Refer to the Following Table When Answering the Following Questions

question 87

Multiple Choice

Refer to the following table when answering the following questions. In this economy, only two goods are produced: video games and pistachios.
Table 2.3: National Income Accounting
-Consider Table 2.3. Using the Laspeyres index, the real GDP in 2017 is:

• A) $8,900.
• B) $8,500.
• C) $1,500.
• D) $15,500.
• E) $9,150.

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Definitions:

Idle Resources

Resources in an economy that are not being fully utilized, often leading to inefficiency.

Output

The total amount of goods and services produced by an economy or a production process.

Guns And Butter

A term used in economics to represent the trade-off between a nation's investment in defense and civilian goods.

Increasing Opportunity Cost

A situation where producing more of one good or service leads to a larger increase in foregone production of another good or service.