A Farmer Grows Wheat and Sells It to a Bakery

question 150

Multiple Choice

A farmer grows wheat and sells it to a bakery for $5.The bakery bakes the wheat into bread,which it sells to a distributor for $20.The distributor sells the bread to a supermarket for $30,which sells the bread to customers for $50.Which of the following is true?

• A)The value added by the distributor is $30.
• B)The supermarket contributed more,in value added,than the bakery.
• C)As a result of this activity,GDP rises by $50 minus the value added at each stage of production.
• D)Counting the value added at each stage instead of the final selling price creates a serious problem of double counting.
• E)The value added by the farmer is $20 because the wheat,which is worth $5,is necessary for each of the three remaining stages of production.

---

Definitions:

Population

The total number of people inhabiting a particular area, region, or country.

Apples

A fruit produced by an apple tree, broadly consumed worldwide and available in many varieties.

Pomegranates

Fruits with a tough outer skin and a multitude of edible seeds inside, known for their sweet and tart flavor and health benefits.

Aging

The process of becoming older or more mature, often referring to the biological and social changes that occur over time in living organisms.