If the Citrus Growers Association grows $1 million worth of oranges, sells $500,000 worth of oranges to consumers, uses the rest to make orange juice that is sold to consumers for $3 million, Citrus Grower's contribution to GDP is:

a. 500,000

b. 1,000,000

c. 3,500,000

d. 4,000,000

Question

Business

Krystal Bryant

12 February, 19:40

If the Citrus Growers Association grows $1 million worth of oranges, sells $500,000 worth of oranges to consumers, uses the rest to make orange juice that is sold to consumers for $3 million, Citrus Grower's contribution to GDP is:

a. 500,000

b. 1,000,000

c. 3,500,000

d. 4,000,000

+4

Answers (1)

Know the Answer?

Memphis Hawkins · Answer 1

The answer is $3 500 000

Explanation:

The above transactions affect the Consumption component in GDP.

Citrus Grower's contribution to GDP = $3 million + $500,000 = $3 500 000

$1 million worth of oranges grown was not included because the amount was the estimated value of oranges and not actual value of oranges consumed.

If the Citrus Growers Association grows $1 million worth of oranges, sells $500,000 worth of oranges to consumers, uses the rest to make orange juice that is sold to consumers for $3 million, Citrus Grower's contribution to GDP is:a. 500,000b. 1,000,000c. 3,500,000d. 4,000,000

If the Citrus Growers Association grows $1 million worth of oranges, sells $500,000 worth of oranges to consumers, uses the rest to make orange juice that is sold to consumers for $3 million, Citrus Grower's contribution to GDP is:

a. 500,000

b. 1,000,000

c. 3,500,000

d. 4,000,000