Table 8-18 a Very Simple Economy Produces Three Goods: Cameras,legal

question 51

Multiple Choice

Table 8-18
A very simple economy produces three goods: cameras,legal services,and books.The quantities produced and their corresponding prices for 2013 and 2018 are shown in the table above.
-Refer to Table 8-18.What is nominal GDP in 2018 when 2013 is the base year?

• A)$28,885
• B)$11,790
• C)$11,200
• D)$10,275

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Definitions:

Willingness To Pay

The greatest sum a consumer is ready to spend for a good or service, showcasing the importance they assign to it.

External Cost

Costs that are not borne by the producers or users of a good or service, but rather by society or third parties, often not reflected in market prices.

Social Optimum

The most efficient allocation of resources that maximizes the overall benefit to society.

Supply Curve

A graphical representation showing the relationship between the price of a good and the quantity of that good that suppliers are willing to sell.