Table 5-4 Shows Price and Output Data for an Economy

question 73

Multiple Choice

Table 5-4 shows price and output data for an economy. Assume that 1994 is the base period. Use the table to answer questions .
Table 5-4

-Refer to Table 5-4. In _____, nominal GDP increased over the previous year due to an increase in prices and not due to a change in output.

• A) 1996
• B) 1999
• C) 1995, 1997, and 1999
• D) 1998

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Definitions:

Comparative Advantage

The ability of an entity to produce a good or service at a lower opportunity cost than another entity, leading to more efficient trade possibilities.

Mutually Beneficial Trade

Trade that provides benefits to both parties involved, allowing them to attain a level of satisfaction or economic utility that would not be possible individually.

Specialization

Division of productive activities so that no one is self-sufficient.

Self-Sufficient

The ability of an individual, household, or nation to meet all their needs without external assistance or trade.