If Bountiful Orchard grows $100,000 worth of peaches,sells $50,000 worth of peaches to consumers,and uses the rest to make jam that is sold to consumers for $100,000,Bountiful Orchard's contribution to GDP is
A) $50,000.
B) $100,000.
C) $150,000.
D) $200,000.
E) $250,000.

Question

Quizplus · Accepted Answer

The contribution to GDP is equal to the total value of goods and services produced, so we need to add up the value of the peaches sold to consumers ($50,000) and the value of the jam sold to consumers ($100,000), which gives us a total of $150,000. The value of the peaches grown but not sold is not included in GDP.

If Bountiful Orchard Grows $100,000 Worth of Peaches,sells $50,000 Worth