Assume that total output consists of 4 apples and 6 oranges and that apples cost $1 each and oranges cost $0.50 each. In this case, the value of GDP is:
A) 10 pieces of fruit.
B) $7.
C) $8.
D) $10.

Question

Quizplus · Accepted Answer

The value of GDP is calculated by multiplying the quantity of each good by its price and then summing those values: (4 apples * $1) + (6 oranges * $0.50) = $4 + $3 = $7.

Assume That Total Output Consists of 4 Apples and 6