(Advanced Analysis) Only Three Goods Are Produced in an Economy

question 93

Multiple Choice

(Advanced analysis) Only three goods are produced in an economy in the following amounts: A = 10, B = 30, C = 5.The current year per-unit prices of these three goods are A = $2, B = $3, and C = $1.If the per-unit prices of the three goods were each $1 in a base year used to construct a GDP price index, then the GDP price index in the current year is

• A)205.5.
• B)255.5.
• C)39.3.
• D)100.

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Definitions:

Lease Rental Expense

An expense incurred from leasing an asset, which is typically recorded on a lessee's income statement.

Lease Liability

An obligation representing the present value of leasing payments due under a lease agreement.

Current Portion

The portion of a long-term liability that is due to be paid within the next twelve months.

Lease Liability

A financial obligation that represents the present value of future lease payments under a non-cancelable lease.