Afarmer grows a bushel of wheat and sells it to a miller for $1. the miller turns the wheat into flour and then sells the flour to a baker for $3. the baker uses the flour to make bread and sells the bread to an engineer for $6. the engineer eats the bread. what is the value added by each person? what is the bread's contribution to gdp?

GDP contribution is $6.

Explanation: GDP refers to the market value of final goods and services produced withing the national territory of a country.

Using the value added method, we can calculate GDP by summing up the value added at each level of production.

Or

Using the expenditure approach, GDP is the market value of the final good sold to the customer.

GDP = Cost of bread to the engineer = $6

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