Table 19-13 Consider the Data Shown Above for Vicuna,a Country That Produces

question 20

Multiple Choice

Table 19-13
$$\begin{array} { | c | c | c | c | c | } \hline \text { Year } & \begin{array} { c } \text { Oranges } \\\text { Produced }\end{array} & \begin{array} { c } \text { Price of } \\\text { Oranges }\end{array} & \begin{array} { c } \text { Shirts } \\\text { Produced }\end{array} & \begin{array} { c } \text { Price of } \\\text { Shirts }\end{array} \\\hline 2013 & 1,800 & \$ 0.90 & 110 & \$ 30.00 \\\hline 2015 & 2,000 & 1.00 & 110 & 35.00 \\\hline\end{array}$$ Consider the data shown above for Vicuna,a country that produces only two products: oranges and shirts.
-Refer to Table 19-13.Nominal GDP for Vicuna for 2013 equals

• A)$4,920.
• B)$5,100.
• C)$5,300.
• D)$5,850.

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Definitions:

Technological Progress

The improvement or development in technology which increases productivity and can lead to economic growth and improved living standards.

Backward-Bending

This term describes a situation where, beyond a certain point, higher wages actually lead to a decrease in labor supply because workers prefer leisure over additional work.

Substitution Effect

The economic principle that as the price of one good increases, consumers will replace it with a similar, less expensive good, influencing demand patterns.

Income Effect

The effect of income variations in individuals or economies on the demand levels for goods and services.