Scenario: Bookland is a country that produces only books. In 1990, Bookland produced 10,000 books at a market price of $10 each. In 1991, Bookland produced 11,000 books at a market price of $12 each.
-Refer to the scenario above.The nominal GDP in Bookland in 1990 was ________.
A) $10,000
B) $100,000
C) $110,000
D) $120,000

Question

Quizplus · Accepted Answer

Nominal GDP is calculated by multiplying the quantity of goods produced by their current market prices. In 1990, Bookland produced 10,000 books at $10 each, so the nominal GDP is 10,000 books * $10/book = $100,000.

Scenario: Bookland Is a Country That Produces Only Books