The Table Below Gives the Quantities and Prices for 2000

question 72

Multiple Choice

The table below gives the quantities and prices for 2000 and 2010 for an economy that produces just two goods: sailboats and coconuts. $$\begin{array} { | l | c | c | c | c | } \hline& { \text { Quantity produced } } && { \text { Price } } \\\hline & \mathbf { 2 0 0 0 } & \mathbf { 2 0 1 0 } & \mathbf { 2 0 0 0 } & \mathbf { 2 0 1 0 } \\\hline \text { Sailboats } & 10 & 20 & \$ 500 & \$ 525 \\\hline \text { Coconuts } & 2,000 & 2,400 & \$ 1 & \$ 2 \\\hline\end{array}$$ For this economy that produces just sailboats and coconuts, and with 2000 is the base year, real GDP was approximately ______ times larger in 2010 than it was in 2000.

• A) 1.34
• B) 1.65
• C) 1.77
• D) 2.19

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Definitions:

Horizontal Merger

The combination of two or more firms competing in the same industry and at the same stage of production, aimed at increasing market share.

Conglomerate Merger

A merger between companies that operate in completely different industries.

Diagonal Merger

A merger between companies in unrelated business activities, potentially for strategic integration or diversification.

Market Shares

The portion of a market controlled by a particular company, indicated as a percentage of total sales in the industry.