Question

A farmer grows wheat and sells it to a miller for $200; the miller turns the wheat into flour and sells it to a baker for $500; the baker uses the flour to make bread and sells the bread for $900. The total GDP for this economy is:_______

Answer 1

The right solution is "$900".

Step-by-step explanation:

• GDP seems to be the cash value of all finished goods products as well as services produced in something like a single year throughout a region. The farmer develops wheat here though and markets these for $200 to such a miller.
• The miller transforms the wheat into flour which offers something for $500 to something like a baker. After that, the final good becomes bread.

Thus, the GDP seems to be $900.