Refer to Table 19-7. Suppose that a simple economy produces only four goods and services: iPods, t-shirts, bottled water, and oranges. Calculate nominal GDP for this simple economy
What will be an ideal response?
Nominal GDP equals (20 × $125 ) + (100 × $20 ) + (2,000 × $1 ) + (600 × $0.50 ) = $6,800.
You might also like to view...
Economists consider which of the following costs to be irrelevant to a short-run business decision?
A) opportunity cost B) out-of-pocket cost C) historical cost D) replacement cost
Credit cards are part of the M2 money supply and are valued at the maximum credit limit of the cardholder.
Answer the following statement true (T) or false (F)
Waiters in countries where it's customary to tip waiters will tend to have lower wages than will waiters in countries where tipping is not customary.
Answer the following statement true (T) or false (F)
Behavioral economics assume that people are:
A. Eager to, and capable of, estimating the benefits and costs of their decisions B. Very much aware of their preferences and are consistent in their preferences C. Prone to falling prey to temptation because they lack sufficient willpower D. Always focusing on their self-interest and maximizing their own net benefits