Suppose there are only two firms in an economy: Cowhide, Inc produces leather and sells it to Couches, Inc, which produces and sells leather furniture. With each $1,000 worth of leather that it buys from Cowhide, Inc, Couches, Inc produces a couch and sells it for $2,600 . Neither firm had any inventory at the beginning of 2015 . During that year, Cowhide produced enough leather for 25 couches
Couches, Inc bought 80% of that leather for $20,000 and promised to buy the remaining 20% for $5,000 in 2016 . Couches, Inc produced 20 couches during 2015 and sold each one during that year for $2,600 . What was the economy's GDP for 2015?
a. $25,000
b. $52,000
c. $57,000
d. $65,000
c
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A. can only occur in studies involving people of significant age difference. B. is a type of selection bias. C. is relatively insignificant with respect to economic research. D. all of the above
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A) $50 B) $40 C) $30 D) $20