Table 4.19 A very simple economy produces three goods: movies, burgers, and bikes.The quantities produced and their corresponding prices for 2007 and 2017 are shown in the table above.
-Refer to Table 4.19.What is nominal GDP in 2017?

Question

Table 4.19  A very simple economy produces three goods: movies, burgers, and bikes.The quantities produced and their corresponding prices for 2007 and 2017 are shown in the table above.
-Refer to Table 4.19.What is nominal GDP in 2017?

Quizplus · Accepted Answer

Nominal GDP in 2017 can be calculated by summing the product of quantities and prices in 2017. That is, 
Nominal GDP in 2017 = (300 x 12) + (450 x 5) + (40 x 150) = $3,600 + $2,250 + $6,000 = $11,850
Therefore, the best choice is D, which is the closest option to the calculated value of nominal GDP in 2017, i.e., $11,850 is $7,035.

Table 419 a Very Simple Economy Produces Three Goods: Movies