Question
Here is Mrs. Baker's revenue and expenses for 2014:
Revenue from sale of bread = $65,000
Cost of materials (such as sugar, yeast, baking soda, etc.) = $15,000
Wages paid = $20,000
Rent paid = $10,000
Mrs. Baker's contribution to the 2014 GDP was what?
I'm confused because I'm not sure if the intermediate good would count in Mrs. Baker's contribution per say. I'm guessing it's either 50,000 or 65,000, but I'm not sure which.
Revenue from sale of bread = $65,000
Cost of materials (such as sugar, yeast, baking soda, etc.) = $15,000
Wages paid = $20,000
Rent paid = $10,000
Mrs. Baker's contribution to the 2014 GDP was what?
I'm confused because I'm not sure if the intermediate good would count in Mrs. Baker's contribution per say. I'm guessing it's either 50,000 or 65,000, but I'm not sure which.