Consider an economy that only produces wooden chairs.In 2012,the economy produced 100 wooden chairs priced at $10 each.The nominal GDP of the economy for the year 2012 is ________.

Question

Quizplus · Accepted Answer

Nominal GDP is the total value of all goods and services produced in an economy in a given year, measured at current market prices. In this case, the economy only produces wooden chairs, and in 2012, it produced 100 chairs priced at $10 each. Therefore, the nominal GDP for the year 2012 can be calculated as:
Nominal GDP = Price x Quantity = $10 x 100 = $1,000. Hence, the correct answer is option (C).

Consider an Economy That Only Produces Wooden Chairs