Suppose an Economy's Production Consists Only of Corn and Soybeans

question 9

Multiple Choice

Suppose an economy's production consists only of corn and soybeans.In 2010,20 bushels of corn are sold at $4 per bushel and 10 bushels of soybeans are sold at $2 per bushel.In 2009,the price of corn was $2 per bushel and the price of soybeans was $1 per bushel.Using 2009 as the base year,it follows that,for 2010,

• A)nominal GDP is $50,real GDP is $100,and the GDP deflator is 50.
• B)nominal GDP is $50,real GDP is $100,and the GDP deflator is 200.
• C)nominal GDP is $100,real GDP is $50,and the GDP deflator is 50.
• D)nominal GDP is $100,real GDP is $50,and the GDP deflator is 200.

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Definitions:

Sales Trends

The direction and movement in sales performance over a specified period of time, providing insight into consumer behavior and market demand.

Niche Consumers

A select group of consumers with very specific preferences and needs that are different from the larger market.

Norms

Accepted standards or ways of behaving in a group, society, or culture, which guide the actions and expectations of its members.