of the good to pluce a dollr value on al t market prices B a

of the good to pluce a dollr value on al t market prices B) at base year prices D) at factor market prices 20) Wober is a small country that produces only steak and potatoes. Steaks have a price of SIO Wobet has GDP equal to A) market value: 30 units C) market value: $120 D) real value; S120

Solution

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19) A) at current market prices

Nominal gdp is the gdp in money terms. It takes into account the current market price of goods and services.

20) C) market value; $ 120

Real value is value in terms of goods and services i.e. 30 units

Market value means value in money terms = 10 steaks x $ 10 + 20 potatoes x $ 1 = $ 120