If a cobbler buys leather for €100 and thread for €50 and uses them to produce and sell €500 worth of shoes to consumers, the contribution to GDP is

Question

Quizplus · Accepted Answer

The contribution to GDP is the market value of the final goods and services produced, which in this case is the €500 worth of shoes sold to consumers. The costs of leather and thread are intermediate goods and are not counted separately in GDP.

If a Cobbler Buys Leather for €100 and Thread for €50