Use the Following Information to Answer the Next Several Questions

question 7

Multiple Choice

Use the following information to answer the next several questions:
Scenario 1: Imagine that an economy produces two goods, flashlights and fishing lures. In 2009, the economy produced 70 flashlights and 40 fishing lures, and the prices of flashlights and fishing lures were $5 and $12, respectively. In 2010, the economy produced 85 flashlights and 50 fishing lures, and the prices of flashlights and fishing lures were $7 and $15, respectively.
-Based on the information in Scenario 1, nominal GDP in 2009 in this economy was

• A)$830.
• B)$1,025.
• C)$1,090.
• D)$1,345.

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Definitions:

Merchant

Under the UCC, a person who regularly sells goods as his or her business or trade or employs people to sell those goods; anyone who works for a person selling those goods; or anyone who holds himself or herself out as a “merchant” or a “dealer.”

Uniform Commercial Code

A comprehensive set of laws governing all commercial transactions in the United States, aimed at harmonizing the law of sales and other commercial transactions across all 50 states.

Substitute Goods

Products or services that can be used in place of each other, where an increase in price for one leads to an increase in demand for the other.

Good Faith

A principle of honesty and sincerity of intention in one's actions, especially in contractual or negotiation contexts.