Economics. Please answer in detail. Thank you! How much do the following activit

Question

Economics. Please answer in detail. Thank you!

How much do the following activities collectively contribute to the gross domestic product (GDP)? A mining company starts from scratch and produces iron ore valued at SI000. The mining company then sells the iron ore to different firm that produces steel valued at S1500. Finally, the steel producer sells the steel to metal fabricator who transforms the steel into folding chairs valued at $1800. A 30- year old house is sold to young family in 2013 for S150,000.The family pays the real estate agent a 5 percent commission. What is the contribution of this transaction to GDP for 2013?

Explanation / Answer

A) GDP = $1800

1st producer cost = 1000

2nd producer additional cost = 500

3rd producer additional cost = 300

total comes out to be 1800

B) GDP = $157500

150000+150000*5%

=157500

Related Questions

Navigate

• Browse (All)
• Browse E
• Subjects

---

---

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