Question

Table 7-1

Product	Quantity	Price
Sweatshirts	50	$35.00
Dental examinations	40	75.00
Coffee drinks	1,000	4.00
Coffee beans	2,000	0.50

Refer to Table 7-1. Suppose that a simple economy produces only four goods and services: sweatshirts, dental examinations, coffee drinks, and coffee beans. Assume all of the coffee beans are used in the production of the coffee drinks. Using the information in the above table, nominal GDP for this simple economy equals

A) 3,090 units.

B) $7,250.

C) $8,750.

D) $9,750.

Answer 1