During last year,a country produced 20,000 pizzas and 10,000 hamburgers and nothing else.The pizzas sold for $10.00 each and the hamburgers for $3.00 each.Nominal GDP was
A)$230,000.
B)$70,000.
C)$460,000.
D)$390,000.
E)$360,000.

Question

Quizplus · Accepted Answer

Nominal GDP is the total value of all final goods and services produced in an economy in a given year. In this case, the country produced 20,000 pizzas and 10,000 hamburgers. The pizzas sold for $10.00 each and the hamburgers for $3.00 each. So, the total value of all final goods and services produced in the country last year is 20,000 x $10.00 + 10,000 x $3.00 = $230,000.

During Last Year,a Country Produced 20,000 Pizzas and 10,000 Hamburgers