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Business, 11.02.2020 00:37 ladybee05

Use the information on the following transactions for a country named Neverland: i. Local coffee shop: • Purchased coffee beans to produce coffee from a foreign company for $2,000. • Paid wages to local workers for $6,000. • Sold $8,000 worth of coffee to foreign consumers. • Bought a new expresso machine for $3,000 from a foreign company. ii. Local textile company. • Bought $1,000 worth of wool from a domestic company. • Bought $1,000 worth of wool from a foreign company. • Paid $5,000 in wages to domestic workers. • Paid $1,000 in wages to foreign workers for part-time jobs in Neverland. • Sold $4,000 cloths to domestic consumers and $6,000 to foreigners. iii. Local company producing wool. • Paid $1,000 for wages to domestic workers. • Sold $1,000 worth of wool to the domestic textile company. iv. Government. • Raised $2,000 from residents in Neverland in taxes. • Hired one domestic worker to produce public services at a cost of $500. What is the value of GDP in Neverland? (a) 18,000 (b) 12,500 (c) 15,500 (d) 15,000

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