Use the Following to Answer Questions

question 206

Multiple Choice

Use the following to answer questions :
Table: Lemonade and Cookies

-(Table: Lemonade and Cookies) Look at the table Lemonade and Cookies. Assume that an economy produces only lemonade and cookies. If 2014 is the base year, real GDP in 2014 was:

• A)$400.
• B)$420.
• C)$425.
• D)$445.

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Definitions:

Wage Rate

The wage rate is the amount of money paid to a worker per unit of time, often hourly or annually, in exchange for their labor in producing goods or services.

Productive Workers

Individuals who efficiently produce goods or services, contributing to the overall output of a business or economy.

Marginal Expenditure

The additional cost incurred from purchasing or producing one more unit of a good or service.

Average Expenditure

The average amount of money spent by consumers or firms on a particular good or service.