An Australian wheat farmer sold some wheat to a local gristmill for $2. The mill milled it into flour
and sold it to Nanna Nakamoto for $6. Nanna Nakamoto, who runs a stall at the Southbank
Markets, then turned the flour into noodles and sold them for $14.
a) How much was contributed to Australia’s GDP? How much value was added at each
step?
b) How does your answer to part (a) change if Nanna Nakamoto is your nanna and rather
than selling the noodles, she gives them to you because you’re a poor student?
c) How does your answer to part (a) change if the gristmill is owned by a Chinese
company?
d) How does your answer to part (a) change if the gristmill is located in China?