The Table Below Shows the Total Output and Prices for an Economy

question 85

Multiple Choice

The table below shows the total output and prices for an economy that produces only two goods,potatoes and oil.Data is provided for the years 2008 and 2018. Quantities Produced Prices TABLE 20-6
Refer to Table 20-6.What is the real GDP for 2018 if 2008 is the base year?

• A)$6750
• B)$7975
• C)$9000
• D)$10 500
• E)$20 100

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Definitions:

Elasticity of Demand

A measure of how much the quantity demanded of a good responds to changes in its price, indicating the sensitivity of consumers to price changes.

Increasing Block Rate

A pricing structure where the unit price of a service or commodity increases with the amount consumed, commonly used in utility and service pricing to encourage conservation.

Second-degree Price Discrimination

A pricing strategy where prices vary based on the quantity consumed or purchased, not by who purchases or their personal characteristics.

Quantity Consumed

The total amount of a product or resource used by individuals, households, or an economy within a specified time frame.