A South Sea Island Produces Only Coconuts

question 201

Multiple Choice

A south sea island produces only coconuts.In 2012,the price of a coconut is $1 and the quantity produced is 200.In 2013,the price of a coconut is $1.50 and the quantity produced is 250.2012 is the base year.Real GDP in 2013 is ________.

• A)$375
• B)$350
• C)$200
• D)$250
• E)$1.50

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Definitions:

Cost of Goods Sold

Direct expenditures involved in producing the merchandise a business sells.

FIFO Cost Flow

An inventory valuation method where the first items purchased are the first ones to be sold, assuming costs rise over time.

Ending Inventory

The total value of goods available for sale at the end of an accounting period, calculated by adding purchases to the beginning inventory and subtracting the cost of goods sold.

Laptop Computers

Portable personal computers designed for mobile use, characterized by a screen and a keyboard.