Your 7-year-old sister and 5 of her friends open a lemonade stand every summer. This past summer, they made $40 per day for 45 days. The divided the money evenly between themselves. None of them paid taxes on their money. What was her contribution to annual national GDP

Question

Business

Allan Vega

24 January, 16:40

Your 7-year-old sister and 5 of her friends open a lemonade stand every summer. This past summer, they made $40 per day for 45 days. The divided the money evenly between themselves. None of them paid taxes on their money. What was her contribution to annual national GDP

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Answers (1)

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Neil Pace · Answer 1

Her contribution was $300 and total contribution was $1,800

Explanation:

Gross Domestic Product is the value of goods and services which is produced or performed in the specific period. The value included in the GDP is the gross value of sales minus the costs associated to make it. In this question they made $40 per day it means they earned the return of $40 per day after deducting all the expenses from sales amount.

So, total contribution will be

Total = $40per day x 45 days = $1,800

Her contribution = $1,800 / 6 = $300