What is this country's Gross Domestic Product?

Question

Question :

Let's say that a country produces the following products: 

5 Dust Mop Slippers at a price of $10 each; 

8 Toilet Shaped Water Bowls for Dogs at a price of $25 each.

10 Automatic Spaghetti Twirling Forks at a price of $5 each.

5 pounds of stone (used in the production of the 3 final products listed above) at a price of $4 per pound.

1 pound of plastic (used in the production of the 3 final products listed above) at a price of $3 per pound.

The country's total depreciation is $20.

What is this country's Gross Domestic Product?

5x10 + 8x25 + 10x5

=50+200+50

=300

total depreciation is $20 so, 300-20 = $280

Is my calculation is correct? or not?

Answer 1

You're almost there with this one. Remember though that GDP does not factor in depreciation costs. This is what the "Gross" in Gross Domestic Product refers to, it's unmodified.

So the answer is just 5*10+8*25+10*5=300.

Thus, Nominal GDP = 300.