During a given year, the following activities occur in two stages: i. A pearl harvesting company...

 

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During a given year, the following activities occur in two stages: i. A pearl harvesting company pays its workers € 80,000 to harvest 6,000 saltwater pearls. The pearls are then sold to a jewellery manufacturer for € 110,000 ii. The jewellery manufacturer pays the jewellery artists it employs € 1,100,000 to make 3,000 sets of one-of-a-kind high-quality pearl earrings, which the manufacturer sells directly to customers for € 2,200,000. Find GDP, Using 1) the 'production-of-final-goods' approach, 2) value added approach 3) income approach During a given year, the following activities occur in two stages: i. A pearl harvesting company pays its workers € 80,000 to harvest 6,000 saltwater pearls. The pearls are then sold to a jewellery manufacturer for € 110,000 ii. The jewellery manufacturer pays the jewellery artists it employs € 1,100,000 to make 3,000 sets of one-of-a-kind high-quality pearl earrings, which the manufacturer sells directly to customers for € 2,200,000. Find GDP, Using 1) the 'production-of-final-goods' approach, 2) value added approach 3) income approach

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ANS Stage 1 1 GDP according to final gooods approach 110000 2GDP ... View the full answer