George and John, stranded on an island, use clamshells for money. Last year Geor

Question

George and John, stranded on an island, use clamshells for money. Last year George caught 400 fish and 5 wild boars. John grew 200 bunches of bananas. In the two-person economy that George and John set up, fish sell for 1 clamshell each, boars sell for 10 clamshells each, and bananas go for 6 clamshells per bunch. George paid John a total of 30 clamshells for helping him to dig bait for fishing, and he also purchased five of Johns mature banana trees for 30 clamshells each. What is the GDP of Georges and Johns island in terms of clamshells?

Explanation / Answer

GDP is a number that expresses the worth of the output of a country in local currency. GDP is the monetary value of all final goods and services produced within the country.

Using the above explanation GDP is calculated as follows:

Particulars Category Units Price per unit Total Fish Goods 300 3 900 Wild Boars Goods 5 10 50 Bananas Goods 100 10 1000 Digging Services 1 30 30 Banana trees Goods 5 30 150 GDP of George

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