Table 5-5 A Hypothetical Country of Lahland Produces Only Movies and Popcorn

question 192

Multiple Choice

Table 5-5
A hypothetical country of Lahland produces only movies and popcorn. Quantities and prices of these goods for the last several years are shown below. The base year is 2009.
Prices and Quantities

-Refer to Table 5-5 What was this country's real GDP in 2010?

• A) $8,800
• B) $10,500
• C) $10,600
• D) $12,200

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Definitions:

Economic Activity

Economic activity encompasses all actions that involve the production, distribution, and consumption of goods and services in an economy.

Depreciation

The value of capital stock used up to produce GDP or that becomes obsolete during the year

Worn-Out Capital

Assets that have reached the end of their useful life in production processes, often leading to decreased efficiency and increased maintenance costs.

National Income Accounting

A statistical approach that measures the overall economic activity and income of a country.