Refer to the Following Table When Answering the Following Questions

question 100

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 Paasche index, the real GDP in 2018 is:

• A) $9,150.
• B) $8,500.
• C) $8,600.
• D) $9,025.
• E) $8,475.

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Definitions:

Direct Materials Used

The raw materials directly incorporated into a finished product during the manufacturing process.

Direct Materials

Raw materials that are directly traceable to the manufacturing of a product.

Cost of Goods Manufactured

The total cost incurred by a company to produce goods within a specific period, including materials, labor, and overhead.

Manufacturing Overhead

All manufacturing costs other than direct materials and direct labor incurred to produce goods, including utilities, depreciation, and maintenance of equipment.