Table 8-1 -Refer to Table 8-1.Suppose That a Simple Economy Produces Only

question 248

Multiple Choice

Table 8-1

-Refer to Table 8-1.Suppose that a simple economy produces only four goods and services: sweatshirts,dental examinations,coffee drinks,and coffee beans.Assume all of the coffee beans are used in the production of the coffee drinks.Using the information in the above table,nominal GDP for this simple economy equals

• A)3,090 units.
• B)$7,250.
• C)$8,750.
• D)$9,750.

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Definitions:

Market Price

The current price at which an asset or service can be bought or sold in the open market, determined by supply and demand dynamics.

Equilibrium Price

The price at which the quantity of goods supplied is equal to the quantity of goods demanded in the market.

Suppliers

Entities or individuals that provide goods or services to consumers or other businesses.

Supply and Demand

Fundamental economic model illustrating how the interaction between sellers and buyers determines the price and quantity of goods or services in a market.