Question: A farmer grows some wheat and sells it to a miller for $1.00. The miller turns the wheat into flour and then sells the flour
A farmer grows some wheat and sells it to a miller for $1.00. The miller turns the wheat into flour and then sells the flour to a baker for $3.00. The baker uses the flour to make bread and sells the bread to an engineer for $6.00. The engineer eats the bread. What is the value added by each person? What is GDP?
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Value added by each person is the value of the good produced minus the amount the person paid for ... View full answer
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