In the Country of Mainia, GDP Consists of Cranberries and Maple

question 75

Multiple Choice

In the country of Mainia, GDP consists of cranberries and maple syrup. In 2010, 50 units of cranberries are sold at $20 per unit, and 100 units of maple syrup are sold at $10 per unit. If the price of cranberries was $10 per unit and the price of maple syrup was $15.00 per unit in the base year, what can we conclude?

• A)Nominal GDP is $2500, real GDP is $2000, and the GDP deflator is 83.3.
• B)Nominal GDP is $2000, real GDP is $2500, and the GDP deflator is 125.
• C)Nominal GDP is $2000, real GDP is $2000, and the GDP deflator is 100.
• D)Nominal GDP is 2500, real GDP is 2500, and the GDP deflator is 100.

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Definitions:

Centralized Decision Making

A decision-making process where major decisions are made by a small group of people or a single person at the top of the organizational hierarchy.

Self Ownership

The concept that individuals own themselves and have autonomy over their own actions, choices, and bodies.

High Power Distance

A cultural dimension that describes a society’s acceptance of unequal distribution of power among its members, where hierarchy is emphasized.

Federalism

A political system where power is divided between a central government and various regional governments.