Suppose a jar of orange marmalade that is ultimately sold to a customer at The Corner Store is produced by the following production process: If the oranges were grown and the jam produced in the year 2015, but the marmalade was sold at The Corner Store in the year 2016, what is the contribution of these transactions to GDP in the year 2015?

Question

Suppose a jar of orange marmalade that is ultimately sold to a customer at The Corner Store is produced by the following production process:  If the oranges were grown and the jam produced in the year 2015, but the marmalade was sold at The Corner Store in the year 2016, what is the contribution of these transactions to GDP in the year 2015?

Quizplus · Accepted Answer

The value added of Citrus Growers Inc. and Florida Jam Company occurred in 2015, so their value added, $0.75 plus $1.25 (= $2.00 - $0.75), are both included in 2015's GDP.

Suppose a Jar of Orange Marmalade That Is Ultimately Sold