Question

nment George and John, stranded on an island, use clamshells for money. Last year George caught 400 fish and 5 wild boars. John grew 200bunches of bananas. In the two-person economy that George and John set up, fish sell for 1 clamshell each, boars sell for 10 clamshells each, and bananas go for 6 clamshells per bunch. George paid John a total of 30 clamshells for helping him to dig bait for fishing, and he also purchased five of John's mature banana trees for 30 clamshells each points What is the GDP of George's and John's island in terms of clamshells? Instructions: Enter your response as whole number. eBookGDP: clamshells

Answer 1

Gross domestic product includes the market value of the final goods and services.

In the given case, final goods are fish, wild boar, and bananas.

Calculate the GDP -

GDP = [Quantity of fish * Price of fish] + [Quantity of wild boars * Price of wild boars] + [Quantity of bananas * Price of bananas]

GDP = [400 * 1 clamshell] + [5 * 10 clamshells] + [200 * 6 clamshells]

GDP = 400 clamshells + 50 clamshells + 1,200 clamshells

GDP = 1,650 clamshells

Thus,

The GDP of George's and John's island in terms of clamshells is 1,650 clamshells.