Ann's Adventures,Inc.organizes and leads backpacking trips for $160.The business spends $30 on first aid equipment and $10 on maps.The amount of value added to GDP is
A)$160 of backpacking trips
B)$200 of backpacking trips,$30 of first aid equipment,and $10 of maps
C)$160 of backpacking trips,$30 of first aid equipment,and $10 of maps
D)$120 of backpacking trips
E)$30 of first aid equipment and $10 of maps only

Question

Quizplus · Accepted Answer

The value added to GDP is the revenue from the backpacking trips ($160) minus the costs of intermediate goods ($30 for first aid equipment and $10 for maps), which equals $120.