Suppose There Are Only Two Firms in an Economy: Rolling

question 255

Multiple Choice

Suppose there are only two firms in an economy: Rolling Rawhide produces rawhide and sells it to Chewy Chomp,Inc. ,which uses the rawhide to produce and sell dog chews.With each $2 of rawhide that it buys from Rolling Rawhide,Chewy Chomp,Inc.produces a dog chew and sells it for $5.Neither firm had any inventory at the beginning of 2007.During that year,Rolling Rawhide produced enough rawhide for 1000 dog chews.Chewy Chomp,Inc.bought 75% of that rawhide for $1500 and promised to buy the remaining 25% for $500 in 2008.Chewy Chomp,Inc.produced 750 dog chews during 2007 and sold each one during that year for $5.What was the economy's GDP for 2007?

• A) $3750
• B) $4250
• C) $5250
• D) $5750

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Definitions:

Sample Size

The number of observations or elements chosen from a population for the purpose of statistical analysis.

Confidence

The feeling or belief that one can have faith in or rely on someone or something.

Environmental Initiative

An environmental initiative is a project or program aimed at promoting sustainability, conserving natural resources, reducing pollution, and protecting ecosystems.

Margin of Error

An expression of the amount of random sampling error in a survey's results, indicating the range of accuracy.