Assume the Table Shown Displays the Total Output and Prices

question 86

Multiple Choice

Assume the table shown displays the total output and prices of the only two goods produced in a small economy. What is the value of the GDP deflator in 2020 (rounded to the nearest whole number) ?

• A) 135
• B) 74
• C) 109
• D) 105

---

Definitions:

Forming Department

This is a specific section within a manufacturing facility where raw materials are shaped into components or products.

Equivalent Unit

a concept used in cost accounting to represent a partial unit of production, allowing for the calculation of costs for partially completed products.

Process Costing

An accounting methodology used to allocate costs to units of product in continuous processes or industries where identical products are produced.

Conversion Costs

The total expenses of manufacturing overhead and direct labor required to transform raw materials into finished products.