An Economy Produces Only Eggs and Ham

question 68

Multiple Choice

An economy produces only eggs and ham. Last year, it produced 100 units of eggs at $3 each and 50 units of ham at $4 each. If in the base year eggs sold for $1.50 per unit and ham sold for $5 per unit, what can we conclude?

• A) Nominal GDP is $500, real GDP is $400, and the GDP deflator is 80.
• B) Nominal GDP is $500, real GDP is $400 and the GDP deflator is 125.
• C) Nominal GDP is $400, real GDP is $500, and the GDP deflator is 80.
• D) Nominal GDP is $400, real GDP is $500, and the GDP deflator is 125.

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Definitions:

Marital Relationship

A legally and socially sanctioned union between two individuals that includes legal, economic, emotional, and physical aspects.

Child's Death

The tragic loss of a child's life, which encompasses a range of emotional, psychological, and social impacts on the family and community.

Dying Sibling

A brother or sister who is in the process of dying, facing end-of-life issues, and the impact on the family dynamic.

Parental Energies

The effort, time, and emotional investment parents dedicate to the upbringing and well-being of their children.