Table 12-18
$\begin{array}{|c|c|c|c|c|}
\hline & 2013 & & 2018 & \
\hline \text { Product } & \text { Quantity } & \text { Price } & \text { Quantity } & \text { Price } \
\hline \text { Camera } & 100 & \$ 10 & 120 & \$ 12 \
\hline \text { Legal services } & 50 & 15 & 45 & 20 \
\hline \text { Books } & 200 & 40 & 210 & 45 \
\hline
\end{array}$ A very simple economy produces three goods: cameras, legal services, and books. The quantities produced and their corresponding prices for 2013 and 2018 are shown in the table above.
-Refer to Table 12-18.What is nominal GDP in 2018 when 2013 is the base year?

Question

Table 12-18
 $\begin{array}{|c|c|c|c|c|}
\hline & 2013 & & 2018 & \
\hline \text { Product } & \text { Quantity } & \text { Price } & \text { Quantity } & \text { Price } \
\hline \text { Camera } & 100 & \$ 10 & 120 & \$ 12 \
\hline \text { Legal services } & 50 & 15 & 45 & 20 \
\hline \text { Books } & 200 & 40 & 210 & 45 \
\hline
\end{array}$ A very simple economy produces three goods: cameras, legal services, and books. The quantities produced and their corresponding prices for 2013 and 2018 are shown in the table above.
-Refer to Table 12-18.What is nominal GDP in 2018 when 2013 is the base year?

Quizplus · Accepted Answer

To calculate nominal GDP in 2018 using 2013 as the base year, we need to use the quantities produced in 2018 multiplied by their base year prices. The formula is:

Nominal GDP = (Quantity2018 × Price2013) + (Quantity2018 × Price2013) + (Quantity2018 × Price2013)

Plugging in the values from the table, we get:

Nominal GDP = (120 × $10) + (45 × $15) + (210 × $40)
Nominal GDP = $1,200 + $675 + $8,400
Nominal GDP = $11,275

Therefore, the correct answer is B.

Table 12-18 A Very Simple Economy Produces Three Goods: Cameras, Legal Services