Suppose There Are Only Two Firms in an Economy: Rolling

question 82

Multiple Choice

Suppose there are only two firms in an economy: Rolling Rawhide produces rawhide and sells it to Chewy Chomp,Inc. ,which uses the rawhide to produce and sell dog chews.With each $1 worth of rawhide that it buys from Rolling Rawhide,Chewy Chomp,Inc.produces a dog chew and sells it for $2.50.Neither firm had any inventory at the beginning of 2014.During that year,Rolling Rawhide produced enough rawhide for 2000 dog chews.Chewy Chomp,Inc.bought 90% of that rawhide for $1800 and promised to buy the remaining 10% for $200 in 2015.Chewy Chomp,Inc.produced 1800 dog chews during 2014 and sold each one during that year for $2.50.What was the economy's GDP for 2014?

• A)$3,800
• B)$4,500
• C)$4,700
• D)$5,000

---

Definitions:

Visual Indicators

Symbols or signs used to represent information or data visually, making it easier to understand or interpret.

Shifts

Changes or transitions in position, direction, or focus.

Preview Sections

Parts of a document or presentation that provide a brief overview or summary of the content that follows, intended to give the audience an idea of what to expect.

Narrative Form

A style of communication that presents information or stories through a structured sequence of events.