Question

Suppose that Mr. Green Jeans sells $5,000 of wheat to Big Ben Bakery. Big Ben uses the wheat to make flour and then hamburger buns, which it sells to Hamburger Heaven for $11,000. Hamburger Heaven also buys $20,000 of beef from a rancher. Hamburger Heaven uses the beef and buns to make 10,000 hamburgers, which are sold for $5 each. How much do these transactions add to GDP?

Answer 1

$50,000

Step-by-step explanation:

Data given in the question

Number of wheat sold to Big Ben Bakery = $5,000

Number of hamburger buns sold to Hamburger heaven = $11,000

Buys of beef = $20,000

Number of hamburgers used = 10,000

Selling price for each hamburger = $5

So by considering the above information, the GDP amounted to

= Number of hamburgers used × Selling price for each hamburger

= 10,000 × $

= $50,000

As GDP refers to the value of final goods and services that are to be produced.