Question

"An economy produces apples (in kilos) and computers (in units). The quantities of apples in years 2008, 2009 and 2010 are 500, 500 and 550, respectively. The quantities of computers in those same years are 5, 5 and 6, respectively. The prices of a kilo of apples (in dollars) in years 2008, 2009 and 2010 are 1, 2 and 3, respectively. The prices of computers (in dollars) for those same years are 900, 1000 and 1000. The real GDP in 2010 prices for year 2008 is"

Answer 1

Answer: $6,500

Explanation:

Given that,

Quantities of apples in 2008 = 500

Quantities of apples in 2009 = 500

Quantities of apples in 2010 = 550

Quantities of computer in 2008 = 5

Quantities of computer in 2009 = 5

Quantities of computer in 2010 = 6

Prices of apple per kilo:

In 2008 = 1

In 2009 = 2

In 2010 = 3

Prices of computers:

In 2008 = 900

In 2009 = 1000

In 2010 = 1000

Real GDP in 2010 prices for year 2008:

= (Quantities of apple in 2008 × price of apple in 2010) + (Quantities of computers in 2008 × price of computers in 2010)

=  (500 × $3) + (5 × $1000)

= $1,500 + $5,000

= $6,500