Question

answer this question based on the given information for an economy in some year.

1. dollar value of resource extraction activity = $20 billion
2. dollar value of production activity = $50 billion
3. dollar value of distribution activity = $80 billion
4. dollar value of final output = $110 billion

gross output for this economy equals
$260 billion.
$150 billion.
an amount that cannot be calculated with the information given.
$110 billion.

Explanation:

Step1: Recall the formula for gross output

Gross output is the sum of the value of all goods and services produced in an economy, including intermediate goods.

Step2: Add the values of resource extraction, production, and distribution activities

Gross output \(= 20 + 50+80\)

$$
LATEXBLOCK0
$$

The value of final output (\(110\) billion) is not used in the calculation of gross output as gross output sums up all stages of production (resource extraction, production, distribution) not just the final stage.

Answer:

\(150\) billion.