A farmer sells $50,000 of apples to individuals who take them home to eat and $75,000 of apples to a company that uses them all to produce cider. How much of the farmer's sales will be included as apples in GDP?

Question

Quizplus · Accepted Answer

Only the $50,000 of apples sold to individuals for consumption is included in GDP as final goods. The $75,000 of apples sold to the company for cider production are considered intermediate goods and are not counted separately in GDP.

A Farmer Sells $50,000 of Apples to Individuals Who Take