A Farmer Sells Sugar to a Candy Producer for $150

question 149

Short Answer

A farmer sells sugar to a candy producer for $150. If the producer uses this sugar to make candy that sells for $200, what is the total contribution to GDP from these transactions?

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Definitions:

Option

A financial derivative that gives the buyer the right, but not the obligation, to buy or sell an asset at a set price on or before a given date.

Receive

To obtain or be provided with something.

Pay

The compensation received by an employee or worker in exchange for their labor or services.

Eurodollars

Deposits denominated in U.S. dollars at banks outside the United States, thus not subject to U.S. banking regulations.