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A Farmer Sells Raw Milk for 50 Cents to a Dairy,who

Question 39

Multiple Choice

A farmer sells raw milk for 50 cents to a dairy,who sells cheese made from it for $1.50 to a grocery wholesaler,who sells it for $1.90 to a supermarket,who sells it to the final consumer for $2.19.These transactions increase the GDP by


A) $0.50 + $1.00 + $0.40 + $0.29 = $2.19.
B) $0.50 + $1.00 + $1.90 + $2.19 = $5.59.
C) $0.50 + $1.00 = $1.50.
D) $2.19 - $1.50 = $0.69.
E) $2.19 - $0.50 = $1.69.

Correct Answer:

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