Use the Following to Answer Questions: Table: Three-Good Economy II

question 297

Multiple Choice

Use the following to answer questions: Table: Three-Good Economy II $$\begin{array} { l c c c c } \hline \text { Product } & \text { Quantity (2008) } & \text { Price (2008) } & \text { Quantity (2009) } & \text { Price (2009) } \\\hline \text { Computers } & 30 & \$ 1,000 & 28 & \$ 995 \\\text { Pizzas } & 100 & 10 & 150 & 15 \\\text { Burgers } & 200 & 200 & 210 & 20 \\\hline\end{array}$$
-(Table: Three-Good Economy II) Suppose an economy produces only the three final goods shown in the table. The table gives information on the quantities produced and the prices of goods sold in 2008 and 2009. What is the growth rate of real GDP in 2009 if 2008 prices are used in the calculation of real GDP?

• A) -3.71%
• B) -1.97%
• C) 1.00%
• D) 2.94%

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Definitions:

Cash Flow

The total amount of money being transferred in and out of a business, especially affecting liquidity.

Accounts Receivable

Money owed to a company by customers for products or services that have been delivered or used but not yet paid for.

Unearned Sales Revenue

Money received by a company for goods or services yet to be delivered or performed.

Depreciable Asset

An asset subject to depreciation, representing the decline in value over time due to use, wear and tear, or obsolescence.