A farmer sells $25,000 worth of apples to individuals who take them home to eat,$50,000 worth of apples to a company that uses them all to produce cider,and $75,000 worth of apples to a grocery store that will sell them to households.How much of the farmer's sales will be included as apples in GDP?

Question

Quizplus · Accepted Answer

Only the $25,000 worth of apples sold directly to individuals for consumption is included in GDP as final goods. The apples sold to the company and grocery store are considered intermediate goods and not included separately in GDP.

A Farmer Sells $25,000 Worth of Apples to Individuals Who