The total value of inputs used in the production of 100,000 units of a good manufactured in a country is $150,000.Assume that the country produces only this good and each unit of the good sells for $10.What is the GDP of the country?
A) $1,000,000
B) $1,150,000
C) $150,000
D) $250,000

Question

Quizplus · Accepted Answer

GDP includes the total value of all final goods and services produced within a country's borders. In this case, the final goods are the 100,000 units sold at $10 each, totaling $1,000,000. The value of inputs ($150,000) is part of the production process and does not directly add to the GDP figure beyond the value of the final goods.

The Total Value of Inputs Used in the Production of 100,000