Table 19-2 -Refer to Table 19-2. Suppose That a Simple Economy Produces

question 95

Multiple Choice

Table 19-2

-Refer to Table 19-2. 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.

Recognize the importance of choosing suitable international business strategies and partners.

Understand economic policy concerns discussed by the Organisation for Economic Co-operation and Development (OECD).

Understand the basic concepts and significance of international business.

Identify different strategies and structures of multinational corporations (MNCs).

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Definitions:

Inflation

The rate of acceleration in the average pricing of goods and services, thereby diminishing the power of purchase.

Unemployment

The condition where people who have the ability to work and are actively looking for jobs cannot secure employment.

Money Supply

The total amount of monetary assets available in an economy at a specific time, including cash, coins, and balances in bank accounts.

Economic Pie

A metaphor for the total amount of wealth or resources available in an economy that can be distributed among its participants.