In Country X, the economy is made from boats, sugarcane and trout. 5000 boats are maded. 4000 are sold. Each boat cost 1000. Each boat is sold for 1250. They fished $30 million trout. $3 million are used for fertilizer. They grew $55 million sugarcane. What is X's GDP? Use value added approach.

To calculate Country X's GDP using the value-added approach, we need to sum up the value added at each stage of production. Let's go through each part of the economy one by one.

### 1. **Boats:**
   - **Production cost of boats:** 5000 boats are made, and each costs $1000 to produce.
     \[
     \text{Total cost of production} = 5000 \times 1000 = 5,000,000 \text{ dollars}
     \]
   - **Revenue from sold boats:** 4000 boats are sold at $1250 each.
     \[
     \text{Total revenue} = 4000 \times 1250 = 5,000,000 \text{ dollars}
     \]
   - **Value added from boat production:** The value added comes from the profit from selling boats. The profit for the 4000 sold boats is:
     \[
     \text{Profit per boat} = 1250 - 1000 = 250 \text{ dollars}
     \]
     \[
     \text{Total value added from boats} = 4000 \times 250 = 1,000,000 \text{ dollars}
     \]

### 2. **Trout Fishing:**
   - **Value of trout fished:** The total value of trout fished is $30 million.
     \[
     \text{Total value of trout} = 30,000,000 \text{ dollars}
     \]
   - **Trout used for fertilizer:** $3 million worth of trout is used for fertilizer. Since this is part of intermediate consumption (used in further production), it is **not included** in the final value added to the economy.
     \[
     \text{Final value of trout} = 30,000,000 - 3,000,000 = 27,000,000 \text{ dollars}
     \]

### 3. **Sugarcane Production:**
   - **Total value of sugarcane:** The sugarcane production contributes $55 million to the economy.
     \[
     \text{Total value of sugarcane} = 55,000,000 \text{ dollars}
     \]

### **Total GDP (Value Added Approach):**
To calculate the GDP, we sum the value added from all sectors of the economy:

\[
\text{GDP} = \text{Value added from boats} + \text{Value of trout} + \text{Value of sugarcane}
\]
\[
\text{GDP} = 1,000,000 + 27,000,000 + 55,000,000 = 83,000,000 \text{ dollars}
\]

### Final GDP of Country X: **$83 million**

Would you like a more detailed breakdown or further clarifications?

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Here are 5 related questions:
1. How would the GDP change if more boats were sold?
2. What impact does intermediate consumption (like trout for fertilizer) have on GDP?
3. How does the value-added approach compare to the income approach in calculating GDP?
4. What would be the effect of higher production costs on the value-added from boats?
5. How can GDP be used to evaluate the economic growth of Country X?

**Tip:** The value-added approach ensures that only the final value of goods and services is counted, avoiding double-counting in GDP estimates.

Learn how to calculate the GDP of Country X using the value-added approach. This problem includes the production of boats, sugarcane, and trout, with a total GDP of $83 million. Suitable for economics students in Grades 11-12.

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