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14 January, 02:34

Acme Steel Co. produces 1,000 tons of steel. Steel sells for $30 per ton. Acme pays wages of $10,000. Acme buys $15,000 worth of coal, which is needed to produce the steel. Acme pays $2,000 in taxes. Acme's contribution to GDP is A. $30,000. B. $20,000. C. $45,000. D. $15,000.

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  1. 14 January, 02:38
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    Option (D) $15,000

    Explanation:

    Data provided in the question:

    Steel produced by Acme steels = 1,000 tons

    Selling cost of steel = $30 per ton

    Wages paid = $10,000

    Market price of the coal bought = $15,000

    Amount paid in taxes = $2,000

    Now,

    The contribution is made to the GDP when the goods is sold or purchased at market price.

    Thus,

    The transaction relating to the purchase of coal by Acme steels will contribute to GDP

    Hence,

    Acme steel co. contribution to the GDP = $15,000

    Option (D) $15,000
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Home » Business » Acme Steel Co. produces 1,000 tons of steel. Steel sells for $30 per ton. Acme pays wages of $10,000. Acme buys $15,000 worth of coal, which is needed to produce the steel. Acme pays $2,000 in taxes. Acme's contribution to GDP is A. $30,000. B.
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