Question

Consider an economy that produces only DVDs and DVD players. Last year, 10th DVDs were sold at $20 each and 5 DVD players were sold at $100 each, while this year 15 DVDs were sold at $10 each and 10 DVD players were sold at $50 each. Real GDP this year using last year as the base year is:A) $100.
B) $700.
C) $1,300.
D) $300

Answer 1

Real GDP this year using last year as the base year is

B) $700

Explanation:

• Last year, 10th DVDs were sold at $20 each and 5 DVD players were sold at $100 each, while this year 15 DVDs were sold at $10 each and 10 DVD players were sold at $50 each. Real GDP this year using last year as the base year is  $700.
• Gross Domestic Product (GDP) is the monetary value of all finished goods and services made in a country during a specific period of time.
• The Gross Domestic Product calculates the real value of economic activity within a country.
• GDP is a number that shows the net worth of the output of a country in local currency.
• It represents the value of all goods and services produced in a specific time period within a country's borders.
• Gross domestic product (GDP) is the total value of everything produced in a country.