(b) The table below presents the production and prices in a very small economy. Use 2015 as the base period 2015 2016 Item Quantity Price Quantity Price Wheat (kg) 5000 $1.50 5500 $1.65 Eggs (kg) 2000 $1.20 2100 $1.55 Bananas (kg) 1000 $1.60 1000 $1.60 Required What are the nominal and the real GDP equal to in 2015? [1+1=2 marks] (ii) What are the nominal and the real GDP equal to in 2016? [1+2=3 marks] (iii) Explain the advantage of measuring GDP in real terms rather than nominal terms, when studying movement in a nation's GDP over time. [2 marks] (c) In country B the GDP per capita is $5000 per person, but most of the population is starving. Yet in country C, the GDP per capita is $4000 per person but the population is happy and well fed. Required With reference to the above example, identify and explain at least three weaknesses in the use of GDP as a measure of national welfare. [6 marks] [Question 4 = 17 marks]