EBK FOUNDATIONS OF ECONOMICS
8th Edition
ISBN: 8220103632225
Author: PARKIN
Publisher: PEARSON
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Chapter 21.A, Problem 2IAP
To determine
To compute:
The value of 2016 production in 2015 prices and percentage increase in production when valuation is made at the prices of 2015.
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A hypothetical country of Narnia produces only movies and popcorn. Quantities and prices of these goods
for the last several years are shown in the following table. The base year is 2017.
Year
2016
2017
2018
2019
Price
(Dollars per movie)
7.6%
7.5%
Movies
7.2%
7%
10.00
11.00
12.00
12.00
Quantity
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(Movies) (Dollars per bag) (Bags)
500
600
650
625
Popcorn
Refer to Table 23-5. What was the rate of inflation for Narnia in 2019? (Hint: round-off to the nearest
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5
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1,000
900
950
925
An economy produces only food and fun. The table shows the quantities produced and prices in 2018 and 2019. The
base year is 2019.
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Calculate the value of 2019 production in 2018 prices and the percentage increase in production when valued at 2018
prices.
In 2018
Item
Quantity
Price
Food
The value of 2019 production in 2018 prices is $
97
$3
Fun
70
$2
In 2019
Item
Quantity
Price
Food
71
$9
Fun
67
$8
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Suppose an economy produces two goods: Apple and Banana. Calculate Nominal GDP and Real GDP by
taking 2015 as a base year.
Prices and Quantities
Quantity of
Apple
Price of Apple
Quantity of
Banana
Year
Price of Banana
2015
$2
100
$3
50
2016
$3
150
$4
100
2017
$4
200
$5
150
Chapter 21 Solutions
EBK FOUNDATIONS OF ECONOMICS
Ch. 21.A - Prob. 1SPPCh. 21.A - Prob. 2SPPCh. 21.A - Prob. 3SPPCh. 21.A - Prob. 4SPPCh. 21.A - Prob. 5SPPCh. 21.A - Prob. 6SPPCh. 21.A - Prob. 7SPPCh. 21.A - Prob. 1IAPCh. 21.A - Prob. 2IAPCh. 21.A - Prob. 3IAP
Ch. 21.A - Prob. 4IAPCh. 21.A - Prob. 5IAPCh. 21.A - Prob. 6IAPCh. 21.A - Prob. 7IAPCh. 21 - Prob. 1SPPACh. 21 - Prob. 2SPPACh. 21 - Prob. 3SPPACh. 21 - Prob. 4SPPACh. 21 - Prob. 5SPPACh. 21 - Prob. 6SPPACh. 21 - Prob. 7SPPACh. 21 - Prob. 8SPPACh. 21 - Prob. 9SPPACh. 21 - Prob. 10SPPACh. 21 - Prob. 1IAPACh. 21 - Prob. 2IAPACh. 21 - Prob. 3IAPACh. 21 - Prob. 4IAPACh. 21 - Prob. 5IAPACh. 21 - Prob. 6IAPACh. 21 - Prob. 7IAPACh. 21 - Prob. 8IAPACh. 21 - Prob. 9IAPACh. 21 - Prob. 10IAPACh. 21 - Prob. 11IAPACh. 21 - Prob. 12IAPACh. 21 - Prob. 1MCQCh. 21 - Prob. 2MCQCh. 21 - Prob. 3MCQCh. 21 - Prob. 4MCQCh. 21 - Prob. 5MCQCh. 21 - Prob. 6MCQCh. 21 - Prob. 7MCQ
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