Jessy builds a desk that is valued at $200. To build the desk, he has purchased new materials for a total cost of $150. The value of GDP in this case would

Question

Quizplus · Accepted Answer

The value of GDP includes the final value of goods and services produced within a country's borders. In this case, Jessy has produced a desk with a market value of $200, which is added to the GDP. However, the cost of materials is not counted in the GDP because they are intermediate goods. Therefore, only the final value of the desk ($200) is added to the GDP, which means the GDP increases by $200 - $150 = $50.

Jessy Builds a Desk That Is Valued at $200