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Arthur sells $100 worth of cotton to Bob. Bob turns the cotton into cloth, which he sells to Camille for $300. Camille uses the cloth to make prom dresses that she sells to Donita for $700. Donita sells the dresses for $1,200 to kids attending the prom. The total contribution to GDP of this series of transactions is

Multiple Choice
A. $2,300.
B. $1,200.
C. $1,100.
D. $500.

Respuesta :

Answer:

The total contribution towards the GDP from all this series of transaction would be B) $1200

Explanation:

GDP means the gross domestic product , in which we include market value of all goods and services that were produced in the economy during defined period of time.

Here the total contribution to GDP would be $1200 because in the end the product that was made was dress with help of cotton , cloth etc, it was the final product that was produced in the economy , that's why only $1200 would be included in the contribution towards economy.

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