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:

Circular-flow Diagram

A visual model in economics that shows how money, goods, and services flow through the economy between households and firms.

Factors Of Production

The assets utilized in creating goods and services, encompassing land, work, money, and business initiative.

Income Paid

The total earnings received by individuals or entities for their labor, investment, or property use.

Markets For Goods And Services

Venues where buyers and sellers exchange goods and services, including physical marketplaces and online platforms.