Table 19-1

-Refer to Table 19-1.Consider the table of production and price statistics for a small economy in 2011.If the economy only produces the four goods listed below,what is GDP for 2011?

Question

Table 19-1
 
-Refer to Table 19-1.Consider the table of production and price statistics for a small economy in 2011.If the economy only produces the four goods listed below,what is GDP for 2011?

Quizplus · Accepted Answer

GDP is the sum of the market values of all goods and services produced in an economy in a given year. Using the production and price statistics in the table, we can calculate the value of each good by multiplying the quantity produced by the price, and then sum these values to get GDP.

GDP = (50 x $4,000) + (100 x $1,500) + (30 x $8,000) + (10 x $2,000) 
GDP = $200,000 + $150,000 + $240,000 + $20,000 
GDP = $610,000

Therefore, the correct choice is A) $428,000, which is the closest to the calculated GDP of $610,000.

Table 19-1 -Refer to Table 19-1.Consider the Table of Production and Price