Suppose That Nova Scotia Produces Cheese and Fish

question 138

Multiple Choice

Suppose that Nova Scotia produces cheese and fish. In 2010, 20 units of cheese are sold at $5 each and 8 units of fish are sold at $50 each. In 2006, the base year, the price of cheese was $10 per unit, and the price of fish was $75 per unit. What can we conclude?

• A)Nominal GDP is $500, real GDP is $800, and the GDP deflator is 62.5
• B)Nominal GDP is $500, real GDP is $800, and the GDP deflator is 160
• C)Nominal GDP is $800, real GDP is $500, and the GDP deflator is 160
• D)Nominal GDP is $800, real GDP is $500, and the GDP deflator is 62.5

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Definitions:

Education System

The network of public and private institutions that provide educational services from primary to higher education.

Productivity Increase

The improvement in the efficiency of production, often seen through a higher output of goods and services without an increase in input.

Industrial Revolution

A period of major industrialization that took place during the late 1700s and early 1800s, significantly transforming economies with the introduction of machinery.

Economic Growth

An increase in the production of goods and services in an economy over a period of time, often indicated by a rise in real GDP (Gross Domestic Product).