Table 19-11
Consider the following data for Tyrovia, a country that produces only two products: guns and butter.
-Refer to Table 19-11. Nominal GDP for Tyrovia in 2013 equals
A) $1,140.
B) $880.
C) $690.
D) $560.

Question

Table 19-11
  Consider the following data for Tyrovia, a country that produces only two products: guns and butter.
-Refer to Table 19-11. Nominal GDP for Tyrovia in 2013 equals
A) $1,140. 
B) $880. 
C) $690. 
D) $560.

Quizplus · Accepted Answer

Nominal GDP is calculated by multiplying the quantity of each product produced by its respective price and then summing these values. In this case, nominal GDP equals (100 guns x $8 per gun) + (40 pounds of butter x $10 per pound of butter) = $800 + $340 = $1,140.

Table 19-11 Consider the Following Data for Tyrovia, a Country