Q12. An artist buys scrap metal from a local steel mill as a raw material for her sculptures. Last year, she purchased 7000 worth of scrap metal. With the steel, she produced 10 authentic sculptures that she sold for 1,000 each to a local art dealer. The art dealer then sold all of the sculptures to art collectors for an average of 1.200 each. Between the artist and the dealer, what was the total value added to GDP? Pick one answer. A. 5000 B. 10000 c. 15000 D. 12000
Q12. An artist buys scrap metal from a local steel mill as a raw material for her sculptures. Last year, she purchased 7000 worth of scrap metal. With the steel, she produced 10 authentic sculptures that she sold for 1,000 each to a local art dealer. The art dealer then sold all of the sculptures to art collectors for an average of 1.200 each. Between the artist and the dealer, what was the total value added to GDP? Pick one answer. A. 5000 B. 10000 c. 15000 D. 12000
Chapter15: Gross Domestic Product
Section: Chapter Questions
Problem 2SQ
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Q12.
An artist buys scrap metal from a local steel mill as a raw material for her sculptures. Last year, she purchased 7000 worth of scrap metal. With the steel, she produced 10 authentic sculptures that she sold for 1,000 each to a local art dealer. The art dealer then sold all of the sculptures to art collectors for an average of 1.200 each.
Between the artist and the dealer, what was the total value added to GDP ?
Pick one answer.
A. 5000
B. 10000
c. 15000
D. 12000
Expert Solution
Step 1
Gross Domestic Product, or GDP, is a measurement of a nation's economic output.
It is described as the entire market value of all finished products produced in a nation over a specific time period, usually a year.All economic transactions in a nation are divided into four primary categories for the purpose of calculating GDP: household consumption spending, corporate investment spending, govt. spending, and net exports (exports minus imports).The overall GDP of a nation is the sum of all these elements.
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