Table 12-5
$\begin{array}{|c|c|c|c|}
\hline \text { Stage of Production } & \text { Seller } & \text { Buyer } & \text { Price } \
\hline 1 & \text { Steelmill } & \text { Auto manufacturer } & \$ 10,000 \
\hline 2 & \text { Auto manufacturer } & \text { Auto dealer } & 18,000 \
\hline 3 & \text { Auto dealer } & \text { Consumer } & 25,000 \
\hline
\end{array}$ Consider the table above showing three stages of production of an automobile.
-Refer to Table 12-5.The value of each automobile in gross domestic product equals

Question

Table 12-5
 $\begin{array}{|c|c|c|c|}
\hline \text { Stage of Production } & \text { Seller } & \text { Buyer } & \text { Price } \
\hline 1 & \text { Steelmill } & \text { Auto manufacturer } & \$ 10,000 \
\hline 2 & \text { Auto manufacturer } & \text { Auto dealer } & 18,000 \
\hline 3 & \text { Auto dealer } & \text { Consumer } & 25,000 \
\hline
\end{array}$ Consider the table above showing three stages of production of an automobile.
-Refer to Table 12-5.The value of each automobile in gross domestic product equals

Quizplus · Accepted Answer

Gross domestic product (GDP) is the total value of all final goods and services produced within a country's borders within a specific time period. The final price paid by the consumer is what counts towards GDP. In this case, the final stage (stage 3) shows the consumer paying $25,000 for the automobile, which is the final price and therefore the value that counts towards GDP.

Table 12-5 Consider the Table Above Showing Three Stages of Production of \text