Birmingham Steel sells steel to Winston Golf Club Manufacturers for $300,000.Winston sells its golf clubs to Academy Sports for $1,000,000.Academy Sports sells Winston golf clubs for $1,500,000.How much is added to GDP?

Question

Quizplus · Accepted Answer

GDP measures the market value of all final goods and services produced within a country in a given period. The sale from Academy Sports to consumers is the final sale, adding $1,500,000 to GDP. The earlier transactions are intermediate and not counted to avoid double counting.

Birmingham Steel Sells Steel to Winston Golf Club Manufacturers for $300,000.Winston