Use the Following to Answer Questions

question 418

Essay

Use the following to answer questions :
-(Table: Gadget GDP in Rayistan) Look at the table Gadget GDP in Rayistan. Rayistan is a small nation that produces only one good, the gadget. The table shows production and prices of gadgets for two consecutive years, as well as the population of Rayistan.
a. Compute nominal GDP in 2010 and 2011.
b. Compute real GDP in 2010 and 2011.
c. Has Rayistan's standard of living, as measured by real GDP per capita, increased, decreased, or stayed the same?

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Definitions:

Workers

Individuals employed by others or self-employed, contributing labor to produce goods or provide services.

Human Capital

The sum of abilities, expertise, and learned information that an individual or group has, considered in relation to its worth or expense for a company or nation.

Profit Maximization

The method through which a company identifies the pricing and production quantity that yields the highest profit.

Human Capital

The skill set, knowledge base, and experiential accumulation found in people or populations, looked at through their financial value or cost burden to a company or a country.