The production of a certain good involves 5 stages. The value added after the first stage of production occurs is is $1.20. The sale price of the good is $2.50. What amount is used to measure GDP?

Name: The production of a certain good involves 5 stages. The value added after the first stage of production occurs is is $1.20. The sale price of the good is $2.50. What amount is used to measure GDP?
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Question

Quizplus · Accepted Answer

GDP is measured by the final sale price of the good, which is $2.50 in this case.

The Production of a Certain Good Involves 5 Stages