The farmer pays 20 cents for the seed that is sold to the miller for 35 cents; the miller makes flour and sells it to the baker for 55 cents. The baker makes bread and sells it to the grocery store for 80 cents and the store sells it to consumers for $1.00. The contribution to Gross Domestic Product (GDP) is

Question

Quizplus · Accepted Answer

GDP is measured by the final value of goods and services, which in this case is the $1.00 paid by consumers for the bread.

The Farmer Pays 20 Cents for the Seed That Is