If Cassie's Coffee House purchases 33 cents worth of ingredients and spends 36 cents on wages per cup of coffee to produce an 89 cent cup of coffee, then Cassie's Coffee House's contribution to GDP is ________ per cup of coffee.

Question

Quizplus · Accepted Answer

To calculate Cassie's Coffee House's contribution to GDP, we need to subtract the intermediate inputs (ingredients and wages) from the final price of the coffee. This gives us:
GDP contribution per cup = Price of coffee - Intermediate inputs
GDP contribution per cup = 89 cents - (33 cents + 36 cents)
GDP contribution per cup = 20 cents
Therefore, the answer is D) 56 cents.

If Cassie's Coffee House Purchases 33 Cents Worth of Ingredients