In the first stage of manufacturing each final unit of a product, a firm purchases a key input at a price of $4 per unit. The firm then pays a wage rate of $4 for the time that labor is exerted, combining an additional $3 of inputs for each final unit of output produced. The firm sells every unit of the product for $13.What is the contribution of each unit of output to GDP in the current year?

The contribution of each unit of output to GDP in the current year is?

Explanation:

Based on the Value Added Method of calculating GDP,we know that GDP of any country=Value of goods and services(VGS)-Intermediate Consumption(IC).In this case,the VGS per unit of output is given as $13.The firm pays an input price of $4 per unit,an additional $3 for input for each unit of final output and $4 as labor expense.

Therefore,IC in this case==$11

Based on the value added method of GDP calculation,the contribution of each unit of output to the GDP in the current year==$2

Hence,each unit output contribution to the current year GDP is $2.

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being born in poverty would limit the people's chances, opportunities and benefits.

this happen because of several things, such as:

- poor people tend to gain less access to good education and nutrition. this mean that their chance to obtain high paying jobs would also be limited.

- poor people tend to socialize with other poor people while the rich tend to socialize with other rich people. this means that simply throguh their social circle, rich people would have more business opportunities compared to the poor people.

- rich people tend to have more capital in their disposal. this would benefit them in business since it is far easier for them to fund their business operation compared to poor people.