Home » Suppose that Mr. Green Jeans sells \$5,000 of wheat to Big Ben Bakery. Big Ben uses the wheat to make flour and then hamburger buns, which they sell…

# Suppose that Mr. Green Jeans sells \$5,000 of wheat to Big Ben Bakery. Big Ben uses the wheat to make flour and then hamburger buns, which they sell…

Suppose that Mr. Green Jeans sells \$5,000 of wheat to Big Ben Bakery. Big Ben uses the wheat to make flour and then hamburger buns, which they sell to Hamburger Heaven for \$11,000. Hamburger Heaven also buys \$20,000 of beef from a rancher. Hamburger Heaven uses the beef and buns to make 10,000 hamburgers with are sold for \$5 each. How much do these transactions add to GDP? [Hint: this question is asking you to compute the “value added” at each stage of production and then to add up the value added amounts to get the answer to the question. You can check the result you get by comparing it to the total market value of the “final goods”.]A. \$86,000B. \$36,000C. \$31,000D. \$50,000

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