Emily is a writer.She buys pens and paper for $20 and writes a 500-page novel that she sells to a publishing company for $500,000.If the publisher prints 1 million copies that sell for $25 each,what is the contribution to GDP of Emily's novel?

Question

Quizplus · Accepted Answer

The contribution to GDP of Emily's novel includes the value of the final product (1 million copies sold at $25 each) and the value of intermediate goods used in the production process (pens and paper bought for $20). The value of the final product is $25 million (1 million copies sold at $25 each). The value of intermediate goods is typically not included in calculations of GDP, but in this case, it is necessary to include it to accurately measure the entire contribution of Emily's novel to GDP. Therefore, the best choice is A) $25 million.

Emily Is a Writer