Consider an Economy That Produces Only DVDs and DVD Players

question 74

Multiple Choice

Consider an economy that produces only DVDs and DVD players. If 10 DVDs are sold at $20 each and 5 DVD players are sold at $100 each, then nominal GDP is:

• A) $100.
• B) $700.
• C) $1,100.
• D) $900.

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Definitions:

Lockup Agreement

A contract between a target corporation and a white knight, giving the knight an option to buy valuable property should a hostile bidder gain control of the target corporation.

Greenmail Option

A strategy where a company buys back its shares from a potential acquirer at a higher price to prevent a takeover.

Target Management

The practice of focusing organizational strategies and operations towards achieving predefined goals and objectives.

Sherman Antitrust Act

A landmark federal statute in the United States passed in 1890 that prohibits monopolistic business practices and promotes competition.