my office (IA old Botany). No late submissions will be accepted. Answer all ques

Question

my office (IA old Botany). No late submissions will be accepted. Answer all questions on these pages. You must show all work legibly to receive credit. Make sure all pages are stapled together and your name is on each page. 1. Sweaters Inc. sells sweaters in the US and in Canada. The production of sweaters is described below. All firms are in the US unless noted Yarns Inc. buys wool from the Haslett Sheep Farm for Yarns Inc. spins the wool into yarn Knitters Co buys yan from Yarns Inc. for Knitters Co knits 400 sweaters Sweaters inc buys 400 sweaters from Knitters Co for Sweaters inc buy 400 boxes from The Box co. of Costa Rica Sweaters Inc. markets and sells the 400 sweaters US buyers buy 300 sweaters for $40 each Canadian buyers buy 100 sweaters for $40 each S 1,000 s 1,500 S 6,000 S 1,200 S 12,000 S 4,000 How much does the production of sweaters sold by Sweaters Inc. add to the U.S. GDP2

Explanation / Answer

Answer:

GDP (gross domestic product) by production method = value of all the output produced – intermediate cost of production (raw materials, services and supplies etc. )

Value of production is = $6000

Intermediate cost = price of wool + yarn + boxes

                            = $1000+$1500+$1,200

                           = $3,700

GDP = $6,000 -$3,700

GDP = $2,300

So, $2,300 Sweaters Inc. added to the GDP of U.S.

Related Questions

Navigate

• Browse (All)
• Browse M
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.