If the Citrus Growers Association grows $1 million worth of oranges,sells $500,000 worth of oranges to consumers,and uses the rest to make orange juice that is sold to consumers for $3 million,the Citrus Growers' contribution to GDP is
A) $500,000.
B) $1,000,000.
C) $3,500,000.
D) $4,000,000.
E) $4,500,000.

Question

Quizplus · Accepted Answer

The Citrus Growers Association's contribution to GDP is the total value of the goods and services it produces in a year. In this case, the total value of oranges grown is $1 million, of which $500,000 is sold directly to consumers (which is already included in GDP) and $3 million worth of orange juice is sold to consumers. Therefore, the total value of Citrus Growers Association's contribution to GDP is $1 million + $3 million = $4 million. However, since $1 million of this is already included in the $3 million value of orange juice sold, we only add the remaining $3 million to the GDP. Therefore, the answer is $3,500,000.

If the Citrus Growers Association Grows $1 Million Worth of Oranges,sells