Table 12-8 -Refer to Table 12-8

question 44

Essay

Table 12-8
$\begin{array}{|l|c|r|}\hline \text { Product } & \text { Quantity } & \text { Price } \\\hline \text { Sweaters } & 50 & \$ 50.00 \\\hline \text { CDs } & 150 & 10.00 \\\hline \text { Sugar } & 600 & 1.00 \\\hline \text { Soft drinks } & 800 & 0.75 \\\hline\end{array}$
-Refer to Table 12-8.Suppose that a simple economy produces only four goods and services: sweaters,CDs,sugar,and soft drinks.Assume one half of the sugar is used in making the soft drinks and the other half of the sugar is purchased by households.Calculate nominal GDP for this simple economy.

---

Definitions:

Cost of Capital

The rate of return that a company must pay to its capital providers, including both debt and equity, to finance its assets.

Expansion Project

A business initiative aimed at increasing the size, reach, or capabilities of the company, often requiring significant capital investment.

Capital Rationing

The process of selecting profitable projects to invest in, limited by the availability of funds.

NPV

Net Present Value, a financial metric used to evaluate the profitability of an investment, considering the time value of money.