George and John stranded on an island use clamshells for mon

George and John, stranded on an island, use clamshells for money. Last year George caught 300 fish and 5 wild boars. John grew 200 bunches 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 5 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. What is the GDP of George’s and John’s island in terms of clamshells?

Solution

George’s worth:

300 fish x 1 + 5 boars x 10 = 350 clamshells

Expense:

Paid 30 clamshells for bait and 150 (5 x 30) clamshells for bananas = 180 clamshells.

Net worth: 350 – 180 = 180 clamshells.

John’s worth:

(200 bananas x 5) + 180 = 1180 clamshells.

Net worth: 1180

GDP of George’s and John’s island in terms of clamshells = 180 + 1180 = 1360 clamshells.

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