Question

Consider a new computer tech company, Arbolet Computing, that does the following each year:

1. Manufactures 1,000 computers that are sold to consumers directly at $2,000 a unit.

2. Manufactures 400 high powered computers that are sold to other companies. These high powered computers are purchased by Amazon and other tech giants to conduct business. These computers are sold $30,000 a unit.

Manufactures 5,000 computer processors priced at $500 a unit. 1,500 units are sold to consumers and 3,500 are used by Arbolet to put into the computers they make.

3. Sell stocks in their company. The total stocks sold are valued at $1,000,000

In this year, what is Arbolet's contribution to GDP?

Answer 1

Particulars	Units	Per Unit Price	Amount	Remarks
Computers sold to consumers	1,000	2,000	20,00,000	Included in GDP
Computers sold to companies	400	30,000	1,20,00,000	Included in GDP
Computer processors sold to consumers	1,500	500	7,50,000	Included in GDP
Processors used in intermediate consumption	3,500		-	Not included in GDP because it is used in manufacturing final goods.
Sold Stocks			-	Financial asset gain/ losses are not counted in GDP
Contribution to GDP (Sum of amount)			1,47,50,000

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