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Calculate the GDP in the given case

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A farmer grows rice, which he sells to a rice factory for polishing for $100. The rice factory polishes and packs the rice into packets, which the factory sells to a rice puff maker for $150. The rice puff maker uses the rice to make rice puffs, which it sells to consumers for a total of $180. Consumers eat the rice puffs. What is the GDP of this economy?

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Solution depicts the steps to estimate the GDP in the given case.

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Let the all of given activities take place in the same period.

Value addition by ...

Solution provided by:
Lokesh Jain, MSc
Education
  • BEng (Hons) , Birla Institute of Technology and Science, India
  • MSc (Hons) , Birla Institute of Technology and Science, India
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