Assume that a rancher sells McDonald's a quarter-pound of meat for $1 and that McDonald's sells you a hamburger made from that meat for $2. In this case, the value included in GDP should be:
A) $0.50.
B) $1.
C) $2.
D) $3.

Question

Quizplus · Accepted Answer

The value included in GDP is the final sale price of the hamburger, which is $2. The cost to the rancher is not included in GDP as it is an intermediate transaction.

Assume That a Rancher Sells McDonald's a Quarter-Pound of Meat