If an economy produced 220 pounds of jelly beans at $5 per pound and 90 pounds of gum drops at $2 per pound in 2012, its real gross domestic product (GDP)was

Question

Quizplus · Accepted Answer

To calculate the real GDP, we need to use the formula: 
Real GDP = (quantity of jelly beans produced in the base year x price of jelly beans in the base year) + (quantity of gumdrops produced in the base year x price of gumdrops in the base year)
Assuming 2012 is the base year, the real GDP would be: 
Real GDP = (220 pounds of jelly beans x $5 per pound) + (90 pounds of gumdrops x $2 per pound)
Real GDP = $1,100 + $180
Real GDP = $1,280. 
Therefore, the best choice is D.

If an Economy Produced 220 Pounds of Jelly Beans at $5