Consider a small economy with 3 individuals.Individual A produces 100 chickens that sell for $8 each.Individual B produces 50 bags of corn that sell for $10 each.Individual C produces 40 bushels of apples that sell for $20 each.National product in this economy is
A)100 chickens plus 50 bags of corn plus 40 bushels of apples.
B)190 units of goods produced.
C)$2100.
D)$2470.
E)Not determinable from the information provided.

Question

Quizplus · Accepted Answer

National product is the total value of goods and services produced in an economy in a given period of time. In this case, the national product is the sum of the value of the chickens, corn, and apples produced. The value of the chickens is 100 * $8 = $800. The value of the corn is 50 * $10 = $500. The value of the apples is 40 * $20 = $800. Therefore, the national product is $800 + $500 + $800 = $2100.

Consider a Small Economy with 3 Individuals