Story: National income and GDP

From wheat to bread

From wheat to bread

This diagram shows the steps that occur between the initial growing of wheat, through to the bread that is purchased. At each stage in the production process there is an economic transaction. The farmer sells wheat to the mill; the miller sells flour to the baker; the baker sells the loaf to a shop, which then makes a final sale to a hungry customer. Gross domestic product (GDP) does not measure any of the intermediate transactions, only the value of the final sale to the consumer.

Using this item

Te Ara - The Encyclopedia of New Zealand

This item has been provided for private study purposes (such as school projects, family and local history research) and any published reproduction (print or electronic) may infringe copyright law. It is the responsibility of the user of any material to obtain clearance from the copyright holder.

All images & media in this story

How to cite this page:

Jeff Cope, 'National income and GDP - Gross domestic product', Te Ara - the Encyclopedia of New Zealand, http://www.TeAra.govt.nz/en/diagram/23578/from-wheat-to-bread (accessed 25 March 2019)

Story by Jeff Cope, published 11 Mar 2010