If an economy produces 3 million oranges that sell for $0.25 each and 100,000 cars that sell for $25,000 each, then when the market value of total output is calculated:
A)oranges receive a greater weight than cars.
B)oranges receive the same weight as cars.
C)oranges receive a smaller weight than cars.
D)the market value of oranges is excluded.

Question

Quizplus · Accepted Answer

The market value of the oranges is $750,000 and the market value of cars is $2.5 billion, so the contribution of cars to the GDP is much larger than the contribution of oranges.

If an Economy Produces 3 Million Oranges That Sell for $0.25