Question

Walmart started the month with 60 pairs of jeans purchased from a jeans manufacturer (the only earlier production stage.) Walmart had paid $10 for each pair of jeans. During the month, Walmart sold 45 pairs of those jeans for $15 each.
Write your answer in the format: $XXX.
a. What was Walmart's Value Added Income at the end of the month?
b. What was the value of Consumption expenditures on Walmart jeans at the end of the month?
c. What was the value of investment spending at the end of the month?
d. What was GDP for the month?

Answer 1

Answer:

Value added income = $75

Consumption Expenditure  = $675

investing spending = 0

GDP is = $675  

Explanation:

given data

jeans purchased = 60 pairs

paid = $10 for each pair

sold  = 45 pairs

sold = $15 each

solution

we get here first Value added income Walmart that is express as

Value added income = value of sold - value of bought   ..............1

Value added income = (15 × 45) - (10 × 60 )

Value added income = $75

and

Consumption Expenditure will be

Consumption Expenditure  = (15 × 45)

Consumption Expenditure  = $675

and

investing spending will be = 0

because here in this month no more investment is done

and

GDP will be final value of goods sold at month end is

GDP is = $675