If a timber yard sells €1,000 of timber to a carpenter and the carpenter uses the timber to build a garage which he sells for €5,000, the contribution to GDP is €6,000.

Name: If a timber yard sells €1,000 of timber to a carpenter and the carpenter uses the timber to build a garage which he sells for €5,000, the contribution to GDP is €6,000.
Brand: Quizplus
Rating: 4.7 (48 reviews)

Question

Quizplus · Accepted Answer

The contribution to GDP is €5,000, as only the final sale of the garage is counted to avoid double counting the value of the timber.

If a Timber Yard Sells €1,000 of Timber to a Carpenter