A guitar is produced in California using $100 in raw materials and sells for $300 in a guitar shop. Each guitar that is produced contributes _____ to U.S. GDP.
A) $100
B) $200
C) $300
D) $400

Question

Quizplus · Accepted Answer

The guitar contributes $300 to U.S. GDP because GDP is measured by the market value of final goods and services, which in this case is the selling price of the guitar.

A Guitar Is Produced in California Using $100 in Raw