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)$2100.
B)$2470
C)100 chickens plus 50 bags of corn plus 40 bushels of apples.
D)190 units of goods produced.
E)not determinable from the information provided.

Question

Quizplus · Accepted Answer

Individual A contributes $800 (100 chickens x $8) to the national product, Individual B contributes $500 (50 bags of corn x $10), and Individual C contributes $800 (40 bushels of apples x $20). Therefore, the national product is $800 + $500 + $800 = $2100.

Consider a Small Economy with 3 Individuals