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 2016?

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 2016?

Quizplus · Accepted Answer

Only the value added of the Corner Store, $0.50 (= $2.50 - $2.00), is included in 2016 GDP because the other stages of production occurred in 2015.

Suppose a Jar of Orange Marmalade That Is Ultimately Sold