volue 1.00 points Suppose that furniture production encompasses the following st
ID: 1158372 • Letter: V
Question
volue 1.00 points Suppose that furniture production encompasses the following stages Stage 1: Trees are sold to lumber company Stage 2: Lumber is sold to furniture company. Stage 3: Furniture company sells furniture to retail store Stage 4: Furniture store sells furniture to consumer. 6,000 $19,000 $24,000 $52,000 Instructions: Enter your responses rounded to the nearest whole number (a) What is the value added at each stage? Stage 1:$ 6000 Stage 2 S 13000 Stage 3: $L-5000. Stage 4: $ 28000 (b) How much does this output contribute to GDP s 52000 (e) How much would the output contribute to GDP if the lumber were imported from Canada? S 28000Explanation / Answer
Stagewise contribution is correct as value added can be calculated by simply substracting previous contributions
Hence Stage 1 $6000 Stage 2 $130000 Stage 3 $5000 Stage 4 $ 28000
GDP would be last stage furniture value $52000 just to avoid double counting
Chosen answer is correct if lumbar is to imported from Canada $28000
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