Table 4.8
-Refer to Table 4.8.Consider the table of production and price statistics for a small economy in 2015.If the economy only produces the four goods listed below, what is GDP for 2015?

Question

Table 4.8 
-Refer to Table 4.8.Consider the table of production and price statistics for a small economy in 2015.If the economy only produces the four goods listed below, what is GDP for 2015?

Quizplus · Accepted Answer

GDP can be calculated by adding the value of all final goods and services produced in an economy in a given year. From the table, we can see that the quantities produced and their corresponding prices for each of the four goods are given. To calculate the value of the goods produced, we need to multiply the quantity produced with the price.

The value of Corn = 50 x $10 = $500

The value of Cars = 100 x $3,000 = $300,000

The value of Education = 5 x $20,000 = $100,000

The value of Healthcare = 500 x $56 = $28,000

Therefore, GDP = $500 + $300,000 + $100,000 + $28,000 = $428,000

Hence, the answer is A) $428,000.

Table 4.8 -Refer to Table 4.8.Consider the Table of Production and Price