Tom is an organic gardener. For several years, he produced only for his own consumption. Last year, he sold his vegetables at a farmer's market. This year, he sold all of his vegetables to a company producing organic vegetable soup. When is the value of Tom's vegetables included in GDP? a. None of his production is included in GDP, since it is considered home production. b. Only when he sells his vegetable at the farmer's market. c. Only when he sells his vegetables to the organic soup company. d. When he sells his vegetables at the farmer's market and when he sells the vegetables to the organic soup company.

Question

Emery Franklin

Business

28 May, 10:28

Tom is an organic gardener. For several years, he produced only for his own consumption. Last year, he sold his vegetables at a farmer's market. This year, he sold all of his vegetables to a company producing organic vegetable soup. When is the value of Tom's vegetables included in GDP? a. None of his production is included in GDP, since it is considered home production. b. Only when he sells his vegetable at the farmer's market. c. Only when he sells his vegetables to the organic soup company. d. When he sells his vegetables at the farmer's market and when he sells the vegetables to the organic soup company.

+5

Answers (1)

Know the Answer?

Dorian Byrd · Answer 1

The answer is: D) When he sells his vegetables at the farmer's market and when he sells the vegetables to the organic soup company.

Explanation:

By definition, all the new final goods (goods that aren't used to produce something else) produced and sold legally within the country are included in the GDP.

Tom's vegetables are;

new final goods, they were produced within the country, and are legal,

So the moment he sold them to someone else they should be included in the GDP.