If Hotdogs Cost $2 This Year and $3 Next Year

question 167

Multiple Choice

If hotdogs cost $2 this year and $3 next year, then 100 hotdogs will contribute

• A)$200 to this year's nominal GDP and $166 to next year's nominal GDP.
• B)$200 to this year's real GDP and $300 to next year's real GDP.
• C)the same dollar amount to each year's nominal GDP because hotdogs are intermediate goods.
• D)$200 to this year's nominal GDP and $300 to next year's nominal GDP.

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Definitions:

Meganational Approach

A strategy by businesses to operate on a global scale, emphasizing uniformity in products and services across countries to exploit economies of scale.

Value Chain

A series of activities that a company performs to create value for its customers, from product design to post-sale service.

Location Economies

The cost advantages gained by a business due to its geographical position, often influencing its competitiveness.

Meganational Strategy

A business strategy that emphasizes operating and competing in multiple countries as one global market.