Suppose an economy produces only three products, A, B, and C. Quantity purchased and changes in the prices of these items over a period are shown below:??Average Price Per UnitProductQuantityYear 1Year 2A10$10$8B152022C85055Using year 1 as a base, the value of the country's nominal GDP in year 1:
A. cannot be determined with the information given.
B. is $3,270.
C. is $850.
D. is $800.
Answer: D
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As time passes after a change in the price, the supply of a good or service
A) becomes more elastic. B) becomes less elastic. C) initially becomes more elastic and then becomes less elastic. D) initially becomes less elastic and then becomes more elastic.
“Fair” outcomes and “efficient” outcomes are always identical.
Answer the following statement true (T) or false (F)
A common misconception about supply is that
a. supply depends on many other variables. b. price is a major determinant of quantity. c. it is a fixed amount. d. quantity cannot be determined in advance. e. All of the above are correct.
If supply increases and the price doesn't change, there will be
A. a surplus. B. neither a shortage nor a surplus. C. both a shortage and a surplus. D. a shortage.