Bob found a seed and planted an orange tree. He hired Harry at $5 to pick the oranges. Bob sold the oranges to Jim for $8, who, at this next stage of production, transformed it into orange juice. Finally, Carol expended $10 for the orange juice. This example illustrates the following approach(es) to calculating GDP:
a) expenditure
b) income
c) value-added
d) all of the above
GDP which is the production of final goods and services within the boundary of a country of in w financial year
The given statement is solved by the value added method of GDP
In this method the addition of value refers from the starting of raw material to intermediate goods to final selling of goods
It mainly consists of three parts that are primary secondary and tertiary
In primary the the Harry is hired to pick the oranges
In secondary stage it is being treated by Jim for $8
In the last stage, juice is being sold to Carol
All the three sectors are included here
Expenditure method includes consumption, investment, government expenditure and net export
In income method, there is measurement of National income
So both of them are excluded
Hence the correct answer here is option C
Bob found a seed and planted an orange tree. He hired Harry at $5 to pick...
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