Homework SourseIntelligence Incorporated produces 100 computer chips and se
Intelligence Incorporated produces 100 computer chips and sells them for $200 each to Bell Computers. Using the chips and other labor and materials, Bell produces 100 personal computers. Bell sells the computers, bundled with software that Bell licenses from Macrosoft at $50 per computer, to PC Charlie’s for $800 each. PC Charlie’s sells the computers to the public for $1,000 each. Calculate the total contribution to GDP using the value-added method.
Company
Value
added
Macrosoft
$
Bell
$
PC Charlie’s
$
GDP by the value-added method: $.
Do you get the same answer by summing up the market values of final goods and services?
(Click to select)NoYes.
Calculate GDP by summing the market values of final goods and services: $.
| Company | Revenues | Cost of purchased inputs | Value |
| Intelligence Inc. | $ | $ | $ |
| Macrosoft | $ | $ | $ |
| Bell | $ | $ | $ |
| PC Charlie’s | $ | $ | $ |
Solution
GDP by the value-added method: $.$115,000.
Do you get the same answer by summing up the market values of final goods and services?
Ans: No.
Calculate GDP by summing the market values of final goods and services: $.195,000.
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