Table 12-18 A Very Simple Economy Produces Three Goods: Cameras, Legal Services

question 186

Multiple Choice

Table 12-18
$$\begin{array} { | l | c | r | r | r | } \hline & { \mathbf { 2 0 0 8 } } & & { \mathbf { 2 0 1 3 } } & \\\hline \text { Product } & \text { Quantity } & \text { Price } & \text { Quantity } & \text { Price } \\\hline \text { Camera } & 100 & \$ 10 & 120 & \$ 12 \\\hline \text { Legal services } & 50 & 15 & 45 & 20 \\\hline \text { Books } & 200 & 40 & 210 & 45 \\\hline\end{array}$$
A very simple economy produces three goods: cameras, legal services, and books.The quantities produced and their corresponding prices for 2008 and 2013 are shown in the table above.
-Refer to Table 12-18.What is real GDP in 2013,using 2013 as the base year?

• A)$28,885
• B)$11,790
• C)$11,200
• D)$10,275

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Definitions:

Infinite Combinations

The potential for limitless mixing and matching of components in a system or set.

Ambiguity

The quality of being open to more than one interpretation; lack of definitiveness or clarity.

Synonymy

The attribute of two or more words having the same or nearly the same meaning.

Infinite Combinations

The concept that elements can be combined in limitless ways to create new ideas or solutions.