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:

Job Order Cost System

This system is a cost accounting method that assigns costs to specific production batches or jobs, making it easier to track the financial resources spent on each job.

Underapplied Manufacturing Overhead

The situation where the allocated manufacturing overhead costs are less than the actual costs incurred.

Overapplied Manufacturing Overhead

The condition where the allocated manufacturing overhead costs exceed the actual overhead expenses incurred during a period.