Question

If a country produced nothing but 20 smartphones and 10 Blu-ray players in 2017, priced at $100 per smartphone and $200 per Blu-ray player, its GDP in 2017 would be:
a. $5,000.
b. $1,000.
c. $4,000.
d. $2,000.

Answer 1

Answer:

The correct answer is option c.

Explanation:

A country produces two goods, smartphones, and Blu-ray players. The quantity of smartphones is 20, its price is $100.

While the quantity of Blu-ray players is 10 and the price is $200.

The GDP of a country measures the value of final goods and services produced in the country in a year.

The GDP of this country will be

=  $(20\times \ 100) + (10\times \ 200)$

= $2,000 + $2,000

= $4,000