Scenario: a Country Produces Only One Good

question 175

Multiple Choice

Scenario: A country produces only one good. It produced 5,000 units of the good during Year 1 and 6,000 units of the good in Year 2. The price of each unit of the good in Year 1 was $280 and it was $320 in Year 2. Suppose Year 1 is taken as the base year for the calculation of GDP.
-Refer to the scenario above.Real GDP of the country has grown by ________.

• A) 0.2 percent
• B) 20 percent
• C) 10 percent
• D) 5 percent

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Definitions:

Controlling

In management, controlling refers to the process of monitoring performance, comparing it with goals, and taking corrective action as needed to ensure that objectives are achieved.

Pricing

The process of determining the value that will be charged for a product or service.

Primary Functions

The main or core activities that are essential for the operation of a business or organization.

Organizations

Entities comprising of individuals working together towards a common goal or objective, structured and managed to meet a need or to pursue collective goals.