Suppose a jar of DeLux popcorn that is ultimately sold to a customer at Friendly Groceries is produced by the following production process: If the corn was grown and the jar of popcorn produced in the year 2015, but the jar was sold at Friendly Groceries in the year 2016, what is the contribution of these transactions to GDP in the year 2016?

Question

Suppose a jar of DeLux popcorn that is ultimately sold to a customer at Friendly Groceries is produced by the following production process:  If the corn was grown and the jar of popcorn produced in the year 2015, but the jar was sold at Friendly Groceries 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 Friendly Groceries, $1.50 (= $4.00 - $2.50), is included in 2016 GDP because the other stages of production occurred in 2015.

Suppose a Jar of DeLux Popcorn That Is Ultimately Sold