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

question 5

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 2008 if 2018 is the base year?

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

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Definitions:

Marginal Cost

The expenditure involved in the production of an extra unit of a good or service.

Elasticity of Demand

An indicator of the degree to which demand for a product changes in response to a variation in its price, shown as a percentage.

Markup

The amount added to the cost price of goods to cover overhead and profit; a percentage over the cost.

Sales Tax

A levy that a government places on the sale of products and services, usually determined as a portion of the selling price.