The Table Given Below Lists the Price Per Unit and Output

question 52

Multiple Choice

The table given below lists the price per unit and output of computers and calculators (the only two goods produced by a nation) for the years 1995 and 2003.
Table 5.6
$\begin{array}{c}\quad\quad\quad\quad\text { Production Data }\\\quad\quad\quad\quad\quad\text { Prices per Unit } \quad\quad \text { Quantity }\\\begin{array}{|c|l|l|c|c|}\hline \text { Production } & \mathbf{1 9 9 5} & \mathbf{2 0 0 3} & \mathbf{1 9 9 5} & \mathbf{2 0 0 3} \\\hline \text { Computers } & \$ 2,000 & \$ 1,600 & 100 & 100 \\\text { Calculators } & \$ 60 & \$ 70 & 900 & 900 \\\hline\end{array}\end{array}$
-Refer to Table 5.6. Calculate the nominal GDP for 1995.

• A) $223,000
• B) $254,000
• C) $448,000
• D) $520,000
• E) $110,000

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Definitions:

Profit Maximizing Level

The point at which a company or business can achieve the highest possible profit given its products, services, costs, and market conditions.

Marginal Revenue Curve

A graphical representation depicting the change in total revenue that results from selling one additional unit of a product or service.

Business License

A legal authorization granted by government agencies that allows individuals or companies to conduct business within the government's geographical jurisdiction.

Profit Maximizing

The process of adjusting the production and sale of goods and services to achieve the highest possible profit.