Table 23-5 The Country of Caspir Produces Only Cereal and Milk. Quantities

question 93

Multiple Choice

Table 23-5
The country of Caspir produces only cereal and milk. Quantities and prices of these goods for the last several years are shown below. The base year is 2015.
Prices and Quantities
-Refer to Table 23-5. In 2017, this country's

• A)real GDP was $900, and the GDP deflator was 138.9.
• B)real GDP was $1250, and the GDP deflator was 128.0.
• C)real GDP was $900, and the GDP deflator was 128.0.
• D)real GDP was $1250, and the GDP deflator was 138.9.

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Definitions:

Cash Payback Period

The time period required for the cash inflows from a capital investment project to cover the initial cash outlay.

Net Cash Inflow

The surplus of cash revenues over cash expenses in a given period, indicating the liquidity added to an entity.

Useful Life

The estimated duration for which an asset is expected to be functional and economically feasible for its intended purpose.

Annual Operating Income

The profit earned from a firm's normal core business operations, excluding deductions of taxes and interest charges.