A South Sea Island Produces Only Coconuts

question 118

Multiple Choice

A south sea island produces only coconuts. In 2005, the price of a coconut is $2.00 and the quantity produced is 400. In 2012, the price of a coconut is $1.50 and the quantity produced is 350. 2005 is the reference base year. Real GDP in 2012 in terms of base-year prices is

• A)$600.
• B)$525.
• C)$800.
• D)$700.
• E)$750.

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Definitions:

Global Competition

The dynamic rivalry between companies from different countries in the global market, involving price, product quality, and customer service.

Social Institutions

Structures or mechanisms of social order and cooperation governing the behavior of a set of individuals within a given community.

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