The Following Table Contains Prices and Quantities for the Three

question 35

Multiple Choice

The following table contains prices and quantities for the three goods produced in the country of Linfieldia.

-Refer to the table above.Assuming that 2015 is the base year,what is real GDP for 2016?

• A) $1,780
• B) $2,915
• C) $3,470
• D) $5,120

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Definitions:

Exchange Economy

Market in which two or more consumers trade two goods among themselves.

Production Process

The series of steps or actions taken to transform inputs (like labor and materials) into final products or services.

Contract Curve

In economics, a curve that represents the set of optimal allocations of resources or goods for which both parties can be no better off with any other division.

Efficient Allocations

The process of distributing resources in a way that optimally utilizes them to achieve maximum productivity and utility without any wastage.