Question

Angus the sheep farmer sells wool to Barnaby the knitter for $20. Barnaby makes two sweaters, each of which has a market price of $40. Collette buys one of them, while the other remains on the shelf of Barna- by’s store to be sold later. What is GDP here?

Answer 1

$ 80

Explanation:

GDP ( gross domestic product) is the total money value of all the finished goods and services that are produced in a country during a specific period.

the contribution of Angus to the country gross domestic product = goods produced × price per unit = $ 40 × 2 = $ 80