Assume that a rancher sells a McDonald's quarter-pound of meat for $1 and that McDonald's sells you a hamburger made from that meat for $2.In this case,the value included in GDP should be:
A) $0.50.
B) $1.
C) $2.
D) $3.

Question

Quizplus · Accepted Answer

The value that should be included in GDP is the price that McDonald's pays to purchase the meat from the rancher, which is $1. When McDonald's sells the hamburger to the customer for $2, that is not included in GDP since it is simply a transfer of ownership of the final product. Therefore, the correct answer is $1, which is option C.

Assume That a Rancher Sells a McDonald's Quarter-Pound of Meat