Suppose GDP Consists of Wheat and Rice

question 30

Multiple Choice

Suppose GDP consists of wheat and rice. In 2011, 200 kg of wheat are sold at $4 per kg, and 100 kg of rice are sold at $2 per kg. If in 2012, the base year, the price of wheat was $1 per kg and the price of rice was $2 per kg, then for year 2011:

• A) nominal GDP is $1000, real GDP is $250
• B) nominal GDP is $400, real GDP is $1000
• C) nominal GDP is $400, real GDP is $250
• D) nominal GDP is $1000, real GDP is $400

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Definitions:

Major Organic Product

The primary product formed in the greatest quantity during a chemical reaction involving organic compounds.

Alcohol Dehydrogenase

An enzyme that facilitates the oxidation and reduction of alcohols and aldehydes within the body.

Ethanol

A type of alcohol found in alcoholic beverages, produced by the fermentation of sugars.

Major Organic Product

The main yield of an organic chemical reaction, distinguished by its premier volume.