Only Three Goods Are Produced in an Economy in the Following

question 162

Multiple Choice

Only three goods are produced in an economy in the following amounts: A = 10,B = 30,C = 5.The current year per unit prices of these three goods are A = $2,B = $3,and C = $1.
-Refer to the above information.Nominal GDP in the current year is:

• A) $110
• B) $115
• C) $45
• D) $90

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Definitions:

Replacement Cost

The current cost of replacing an asset with a new one of similar kind and quality.

LIFO

Last-In, First-Out, an inventory valuation method where the most recently produced or acquired items are the first to be expensed.

Inventory Liquidations

The process of converting a company's inventory into cash, typically at a discount, often used to meet short-term financial needs.

Income Taxes

Taxes imposed by government authorities based on the income earned by individuals and corporations.