During a given year, the following activities occur:
i. A silver mining company pays its workers $200,000 to mine 75 pounds of silver. The silver is then sold to a jewelry manufacturer for $300,000.
ii. The jewelry manufacturer pays its workers $250,000 to make silver necklaces, which the manufacturer sells directly to consumers for $1,000,000.
a. Using the production-of-final-goods approach, what is GDP in this economy?
b. What is the value added at each stage of production? Using the value-added approach, what is GDP? c. What are the total wages and profits earned? Using the income approach, what is GDP?