(Table) Suppose a loaf of bread goes through the following stages of production, with the values noted at the end of each stage: $$\begin{array} { l l }
\text { Stage } & \text { Value } \
\text { 1. Farmer's wheat } & \$ 0.65 \
\text { 2. Miller's flour } & \$ 1.20 \
\text { 3. Baker's bread } & \$ 1.80 \
\text { 4. Grocer's bread } & \$ 2.65
\end{array}$$ The sale of one loaf of bread adds _____ to GDP.
A) $4.45
B) $5.65
C) $2.65
D) $6.30

Question

(Table) Suppose a loaf of bread goes through the following stages of production, with the values noted at the end of each stage: $$\begin{array} { l l } 
\text { Stage } & \text { Value } \
\text { 1. Farmer's wheat } & \$ 0.65 \
\text { 2. Miller's flour } & \$ 1.20 \
\text { 3. Baker's bread } & \$ 1.80 \
\text { 4. Grocer's bread } & \$ 2.65
\end{array}$$ The sale of one loaf of bread adds _____ to GDP.
A) $4.45
B) $5.65
C) $2.65
D) $6.30

Quizplus · Accepted Answer

GDP is measured by the final value of goods and services, which in this case is the grocer's bread at $2.65.

(Table) Suppose a Loaf of Bread Goes Through the Following