Table 12-2 -Refer to Table 12-2

question 145

Multiple Choice

Table 12-2
$\begin{array}{|c|c|r|}\hline \text { Product } & \text { Quantity } & \text { Price } \\\hline \text { Shoes } & 40 & \$ 60.00 \\\hline \text { DVDs } & 100 & 18.00 \\\hline \text { Tomatoes } & 2,000 & 1.00 \\\hline \text { Ketchup } & 300 & 4.00 \\\hline\end{array}$
-Refer to Table 12-2.Suppose that a simple economy produces only four goods and services: shoes,DVDs,tomatoes,and ketchup.Assume one half of the tomatoes are used in making the ketchup and the other half of the tomatoes are purchased by households.Using the information in the above table,nominal GDP for this simple economy equals

• A) $7,400.
• B) $6,400.
• C) $5,800.
• D) 2,440 units.

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Definitions:

Authoritarian

A governing system or leadership style characterized by strong central power and limited political freedoms.

Democratic

Pertaining to a system of government by the whole population or all the eligible members of a state, typically through elected representatives.

Laissez-faire

An economic principle advocating minimal governmental interference in the free market and the economic affairs of individuals.

Bureaucratic Innovations

New methods, policies, or practices implemented within bureaucratic structures to improve efficiency, responsiveness, or outcomes in organizational or governmental operations.