Exploring GNP (2)

11. Here are transactions that took place last year in the country named Great Dry Place (GDP for short). Decide which of these transactions belongs in the computation of the Gross Domestic Product statistics for GDP. Explain why you exclude the ones that you exclude.

a. Apricot farmers produce 10 tons of apricots that they sell for $40 per ton to the apricot factories.

b. Apricot factories transport the apricots to their plants where they dry them. The sell the resulting output of 5 tons of dried apricots to the public for $100 per ton.

c. Broccoli farmers produce 10 tons of broccoli. They sell 5 tons to the public at $25 per ton.

d. They sell 5 tons to the foreign market for $25 per ton.

e. One of the broccoli farmers sells his farm to another resident of GDP for $100.

f. Carrot farms produce 10 tons of carrots that sell to consumers at $25 per ton.

g. One carrot farmer borrows $50 from savers to help finance his operations.

h. Carrot production pollutes the water. An enterprising resident invents a Drug to purify it. He sells 20 at $1.00 each

i Twenty-five tons of Fish are imported at $5 per ton.

j. What is total GDP for GDP? $

Review Question back Next