Table 15-4 the Country of Caspir Produces Only Cereal and Milk.Quantities and Milk.Quantities

question 267

Multiple Choice

Table 15-4
The country of Caspir produces only cereal and milk.Quantities and prices of these goods for the last several years are shown below.The base year is 2008.
Prices and Quantities

-Refer to Table 15-4.In 2010,this country's

• A) real GDP was $780,and the GDP deflator was 141.0.
• B) real GDP was $825,and the GDP deflator was 133.3.
• C) real GDP was $780,and the GDP deflator was 133.3
• D) real GDP was $825,and the GDP deflator was 141.0

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Definitions:

Industry Supply

The total quantity of a good or service that all producers in a market are willing and able to sell at various prices.

External Benefits

Positive effects of a production or consumption activity on individuals or society who are not directly involved in the transaction.

Subsidizing Production

Financial assistance provided by the government or other institutions to reduce the cost of producing goods or services and encourage increased output.

Negative Externalities

A situation where a third party suffers from a decision or action made by others, typically not reflected in the market price.