Use the Following to Answer Questions

question 111

Multiple Choice

Use the following to answer questions :
Figure: Sugar and Freight Trains
-(Figure: Sugar and Freight Trains) Look at the figure Sugar and Freight Trains. Suppose the economy is operating at point B. The opportunity cost of producing the third freight train would be _____ tons of sugar.

• A)6
• B)19
• C)45
• D)80

---

Definitions:

Real GDP

Gross Domestic Product adjusted for inflation, measuring the value of goods and services produced in an economy in real terms.

Nominal GDP

The market value of all final goods and services produced within a country in a year, measured using current prices without adjusting for inflation.

GDP Deflator

A measure of the level of prices of all new, domestically produced, final goods and services in an economy, used to adjust nominal GDP to real GDP.

Per Capita Real GDP

An economic metric that measures the economic output of a country adjusted for inflation and divided by the total population.