Table 23-8 A Country Produces Only Meat and Potatoes in the Quantities

question 376

Multiple Choice

Table 23-8
A country produces only meat and potatoes in the quantities and prices listed below. Use 2011 as the base year.
-Refer to Table 23-8. In 2012, nominal GDP is

• A)$191.50, and real GDP is $170.
• B)$157, and real GDP is $170.
• C)$191.50, and real GDP is $157.
• D)$170, and real GDP is $227.50.

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Definitions:

Worse Off

A situation in which an individual, group, or economy is in a poorer or less advantageous position compared to a previous state or another entity.

Equitable

Characterized by fairness and impartiality; ensuring just treatment or distribution of resources without favoritism or discrimination.

Externalities

Economic side effects or by-products that affect an uninvolved third party; can be either positive or negative.

Pareto Efficient

A circumstance in resource distribution where any improvement for one individual means a disadvantage for at least another.