How does the income approach to measuring GDP differ from the expenditure approach? Explain the meaning of value added and its importance in the income approach. Consider the following data for the selling price at each stage in the production of a five-pound bag of flour sold by your local grocer. Calculate the final market value of the flour.
Stage of Production Sale Price
Farmer $0.30
Miller $0.50
Wholesaler $1.00
Grocer $1.50