A south sea island produces only coconuts.In 2012,the price of a coconut is $1 and the quantity produced is 200.In 2013,the price of a coconut is $1.50 and the quantity produced is 250.2012 is the base year.Real GDP in 2013 is ________.
A)$375
B)$350
C)$200
D)$250
E)$1.50

Question

Quizplus · Accepted Answer

Real GDP in 2013 is calculated using the base year prices. In 2013, 250 coconuts were produced, and using the 2012 price of $1 per coconut, the real GDP is 250 * $1 = $250.

A South Sea Island Produces Only Coconuts