Table 19-5

A very simple economy produces three goods: movies, burgers, and bikes. The quantities produced and their corresponding prices for 2006 and 2011 are shown in the table above.
-Refer to Table 19-5.What is nominal GDP in 2011?

Question

Table 19-5
  
A very simple economy produces three goods: movies, burgers, and bikes. The quantities produced and their corresponding prices for 2006 and 2011 are shown in the table above.
-Refer to Table 19-5.What is nominal GDP in 2011?

Quizplus · Accepted Answer

Nominal GDP is calculated by multiplying the quantity produced by its corresponding price and summing up all the products. Therefore, the nominal GDP in 2011 is (30 x 80) + (600 x 2) + (70 x 95) = $2,400 + $1,200 + $6,435 = $9,035. Therefore, the correct choice is D.

Table 19-5 a Very Simple Economy Produces Three Goods: Movies, Burgers, and Three