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1 June, 21:42

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

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Answers (1)
  1. 2 June, 01:02
    0
    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.
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