Table 12-17 A Very Simple Economy Produces Three Goods: Movies, Burgers, and \text

question 138

Multiple Choice

Table 12-17
$\begin{array}{|c|c|c|c|c|}\hline & 2013 & & 2018 & \\\hline \text { Product } & \text { Quantity } & \text { Price } & \text { Quantity } & \text { Price } \\\hline \text { Movies } & 20 & \$ 6.00 & 30 & \$ 7.00 \\\hline \text { Burgers } & 100 & 2.00 & 90 & 2.50 \\\hline \text { Bikes } & 3 & 1,000.00 & 6 & 1,100.00 \\\hline\end{array}$ A very simple economy produces three goods: movies, burgers, and bikes. The quantities produced and their corresponding prices for 2013 and 2018 are shown in the table above.
-Refer to Table 12-17.What is nominal GDP in 2013?

• A) $3,320
• B) $3,690
• C) $6,360
• D) $7,035

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Definitions:

Accounts Receivable

Money owed to a business by its customers for goods or services that have been delivered but not yet paid for.

Income Tax Expense

The cost incurred by businesses or individuals due to income taxes, representing a financial charge for earnings.

Budgeted Balance Sheet

A projection of a company's financial position at a future date, showing anticipated assets, liabilities, and equity.

Managerial Accounting

The process of identifying, measuring, analyzing, and interpreting accounting information by business managers to make informed strategic decisions.