Question

farmer sells $50,000 of apples to individuals who take them home to eat and $75,000 of apples to a company that uses them all to produce cider. How much of the farmers sales will be included as apples in GDP?

Answer 1

$50,000

Step-by-step explanation:

The gross domestic product is the sum of all final goods and services produced in an economy within a given period which is usually a year.

The $50,000 worth of Apples sold to individuals represent final goods. They are included as part of consumption in the calculation of GDP.

The $75,000 sold to firms which are used to produce Apple ciders are intermediate goods. Intermediate goods aren't included in the calculation of GDP.

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