Use the Following to Answer Questions

question 13

Multiple Choice

Use the following to answer questions:
-(Table: Lemonade and Cookies) Use Table: Lemonade and Cookies. Assume that an economy produces only lemonade and cookies. The growth of nominal GDP from 2013 to 2014 was due to approximately a _____% increase in prices and approximately a _____% increase in aggregate output.

• A) 11.25; 0
• B) 0; 45
• C) 5; 11.25
• D) 6.25; 5

---

Definitions:

Profitability

A measurement of the efficiency and effectiveness of a company at generating profits from its operations.

Competition And Profitability

The relationship between the competitiveness of a market and the ability of firms within that market to generate profits.

Competitive Forces

The external factors that influence the competitive position of a firm in an industry or market.

Interdependent

A situation where entities or individuals depend on each other, often seen in economic and social settings.