Table 8-2 -Refer to Table 8-2.Suppose That a Simple Economy Produces Only

question 31

Multiple Choice

Table 8-2

-Refer to Table 8-2.Suppose that a simple economy produces only four goods and services: shoes,DVDs,tomatoes,and ketchup.Assume one half of the tomatoes are used in making the ketchup and the other half of the tomatoes are purchased by households.Using the information in the above table,nominal GDP for this simple economy equals

• A)$7,400.
• B)$6,400.
• C)$5,800.
• D)2,440 units.

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Definitions:

Sunk Costs

Outlays already made that cannot be refunded or retrieved.

Project Value

The total worth of a project, calculated by evaluating all incoming and outgoing cash flows to determine its overall financial benefit.

Cost Reduction

Refers to strategies and actions a company undertakes to decrease its total expenses and improve profitability.