Suppose the Economy of Econoworld Produces Only Two Goods, Kayaks

question 73

Multiple Choice

Suppose the economy of Econoworld produces only two goods, kayaks and birdseed.In 2017, 20 kayaks are produced and sold for $1,000 each and 10 bags of birdseed are produced and sold for $30 each.The value of nominal GDP in 2017 is

• A)$20,000.
• B)$300.
• C)$23,000.
• D)$20,300.
• E)20 kayaks plus 10 bags of birdseed.

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Definitions:

Return On Investment

A profitability measure that calculates the return of an investment relative to its cost.

Profit Center

A division or segment of a company that is responsible for generating its own revenue and profit.

Residual Income

The income that remains after all personal debts and expenses have been paid, or in business, after all capital costs are deducted from net revenues.

Internal Centralized Service Department

A department within an organization that provides essential services or support centrally to other departments, often aiming to increase efficiency and standardization.