SSuppose that furniture production encompasses the following stages:Stage 1: Trees are sold to lumber company.Stage 2: Lumber is sold to furniture company.Stage 3: Furniture company sells furniture to retail store.Stage 4: Furniture store sells furniture to consumer.Instructions: Enter your responses as a whole number.a. What is the value added at each stage?Stage 1: $Stage 2: $Stage 3: $Stage 4: $b. How much does this output contribute to GDP?$c. How much would this output contribute to GDP if the lumber were imported from Canada?$$800$ 2,000$5,000$9,000

***For subpart C, no information is given on the cost of the imported lumber. Without that…

Answered: a. What is the value added at each…

a. What is the value added at each stage? Stage 1: $ Stage 2: $ Stage 3: $ Stage 4: $ b. How much does this output contribute to GDP?

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Question

S
Suppose that furniture production encompasses the following stages:
Stage 1: Trees are sold to lumber company.
Stage 2: Lumber is sold to furniture company.
Stage 3: Furniture company sells furniture to retail store.
Stage 4: Furniture store sells furniture to consumer.
Instructions: Enter your responses as a whole number.
a. What is the value added at each stage?
Stage 1: $
Stage 2: $
Stage 3: $
Stage 4: $
b. How much does this output contribute to GDP?
$
c. How much would this output contribute to GDP if the lumber were imported from Canada?
$
$800
$ 2,000
$5,000
$9,000

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