If a cobbler buys leather for r₁ 900 and thread for R950 and uses them to produce and sell R9 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 R9 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 R₁ 900 and Thread