Table 12-22
2013 2018 -Refer to Table 12-22

question 238

Essay

Table 12-22
2013 2018
$\begin{array}{|l|c|c|c|c|}\hline {\text { Product }} & \text { Quantity } & \text { Price } & \text { Quantity } & \text { Price } \\\hline \text { Pizzas } & 100 & \$ 10 & 120 & \$ 12 \\\hline \text { Haircuts } & 50 & 15 & 45 & 20 \\\hline \text { Backpacks } & 200 & 40 & 210 & 45 \\\hline\end{array}$
-Refer to Table 12-22.Suppose that a very simple economy produces three goods: pizzas,haircuts,and backpacks.Suppose the quantities produced and their corresponding prices for 2013 and 2018 are shown in the table above.Use the information to compute real GDP in the year 2013 and 2018.Assume that 2013 is the base year.Is output higher in 2018 or 2013? Why?

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Definitions:

Worse than Average Effect

The cognitive bias where individuals undervalue their own qualities and abilities in comparison to others.

Social Comparison Theory

A theory positing that individuals determine their own social and personal worth based on how they stack up against others.

Better than Average Effect

A cognitive bias where individuals overestimate their own qualities and abilities relative to others.

Disapproving Expression

A facial gesture or communication that conveys disapproval, dissatisfication, or disagreement.