Suppose a 1 pound steak sells at a grocery store is for $7. Suppose that the grocery store purchased it from a butcher for $4. Suppose the butcher bought cattle from farmers for $2 per sellable pound and paid their labor approximately $1 for pound of sellable beef labor, and made $1 in profit. What is the GDP contribution of the steak?

Question

Quizplus · Accepted Answer

GDP measures the final value of goods and services produced within a country. In this case, the final sale price of the steak is $7, which is the value added to the GDP.

Suppose a 1 Pound Steak Sells at a Grocery Store