All of the points on a budget line result in combination of goods that expend all of her income.

The effective coordination of social behavior through voluntary exchange depends significantly upon

A) clearly defined property rights. B) such civic virtues as courtesy and tolerance. C) well-established and generally accepted rules regarding behavior. D) all of the above.

Refer to Table 8-2. Suppose that a simple economy produces only four goods and services: shoes, DVDs, tomatoes, and ketchup. Assume one half of the tomatoes are used in making the ketchup and the other half of the tomatoes are purchased by households. Using the information in the above table, nominal GDP for this simple economy equals

A) $7,400. B) $6,400. C) $5,800. D) 2,440 units.