For the Following Question(s), Suppose That an Economy Produces Only

question 1

Multiple Choice

For the following question(s) , suppose that an economy produces only food and clothing, and that price and quantity data are given in the table below.


-Year 2 nominal GDP is

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Definitions:

Income Groups

Categories of people classified according to the level of their income, often used in socio-economic and market research to analyze spending habits, needs, and trends.

Lump-Sum

A single payment made at a particular time, as opposed to a series of smaller payments or installments.

Tax System

The structured way in which taxes are levied in a country, including the collection, management, and expenditure of taxed income.

Regressive

Describes a tax structure where the tax rate decreases as the taxable amount increases, placing a higher relative burden on lower income earners.