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  Calculate the value of final goods (which will become part of the GDP) in the case given below.      A cotton farmer sells his weekly output of cotton to a weaver for ` 5000. The weaver weaves cloth out of this and sells it to the cloth trader for ` 6500. The trader sells part of this cloth to a shirt maker for ` 5000 and the remaining cloth to a retailer for ` 3000. The shirt maker makes 60 shirts, each selling for ` 150. The cloth retailer sells his cloth to the final customers for ` 4000.

Answer:

                  Value added by the farmer = ` 5000 Value added by the weaver = ` 6500 - ` 5000 = ` 1500 Value added by the trader = ` 5000 + ` 3000 - ` 6500 = ` 1500 Value added by the retailer = ` 4000 ` 3000 =` 1000 Value added by the shirt maker = 60 x 150 - ` 5000 = ` 4000 Total value of final goods = value added by all = ` (5000 + 1500 + 1500 +1000 + 4000) = ` 13000 This is the same value as the final goods, i.e., ` 4000 for the cloth and ` 9000 for the shirts.