Question

In a simple economy, three goods are produced during the year, in these quantities: 10 pens, 20 shirts, and 30 radios. The price of pens is $4 each, shirts are $30 each, and radios are $35 each. What is GDP for the economy?

Answer 1

The GDP for the economy is $1690, which is calculated by multiplying the quantities of each good produced by their respective prices and summing them up.

Step-by-step explanation:

The Gross Domestic Product (GDP) of an economy is the total value of all final goods and services produced in a year. To calculate GDP, we multiply the quantities of each good produced by their respective prices and sum them up. In this case, the quantities are 10 pens, 20 shirts, and 30 radios, and their prices are $4, $30, and $35 respectively.

GDP = (10 pens * $4/pen) + (20 shirts * $30/shirt) + (30 radios * $35/radio)

GDP = $40 + $600 + $1050 = $1690

Therefore, the GDP for the economy is $1690.

Answer 2

40+60+1,050=1,150 the GDP is 1,150