In 2013, Acme Agricultural Inc. produced 600 bushels of Hemp. In the same year, it sold 400 of these bushels in the market for $20 apiece. Acme sold the remaining bushels to its super-foods subsidiary, which (in 2013) used them to produce 300 1-pound bags of hemp hearts. The market value of the hemp hearts is $25 per bag. Acme's subsidiary sold half of these bags to consumers in 2013, and sold the other half in 2014.
Under the Spending Approach, what was Acme's contribution to GDP in 2013?
A. $8000 in Hemp and $7500 Hemp Hearts
B. $8,000 in Hemp and $3500 in Hemp Hearts
C. $8000 in Hemp and $3750 in Hemp Hearts
D. $12,000 in Hemp and $7500 in Hemp Hearts
E. $12,000 Hemp and $3500 in Hemp Hearts
F. $12,000 in Hemp and $1750 in Hemp Hearts
Same scenario as the previous question. In 2013, Acme Agricultural Inc. produced 600 bushels of Hemp. In the same year, it sold 400 of these bushels in the market for $20 apiece. Acme sold the remaining bushels to its super-foods subsidiary, which (in 2013) used them to produce 300 1-pound bags of hemp hearts. The market value of the hemp hearts is $25 per bag. Acme's subsidiary sold half of these bags to consumers in 2013, and sold the other half in 2014.
Under the Value-Added Approach, what was Acme's contribution to GDP in 2013?
Note: the Value-Added Approach is also called the Production Approach.
A.$12,000 Hemp and $3500 in Hemp Hearts
B. $12,000 in Hemp and $1750 in hemp hearts
C. $8,000 in Hemp and $3500 in Hemp Hearts
D. $8000 in Hemp and $3750 in Hemp Hearts
E. $12,000 in Hemp and $7500 in Hemp Hearts
F. $8000 in Hemp and $7500 Hemp Hearts
Please show how you got to each. Thank you!