Use the Following Information to Answer the Next Several Questions

question 7

Multiple Choice

Use the following information to answer the next several questions:
Scenario 1: Imagine that an economy produces two goods, flashlights and fishing lures. In 2009, the economy produced 70 flashlights and 40 fishing lures, and the prices of flashlights and fishing lures were $5 and $12, respectively. In 2010, the economy produced 85 flashlights and 50 fishing lures, and the prices of flashlights and fishing lures were $7 and $15, respectively.
-Based on the information in Scenario 1, nominal GDP in 2009 in this economy was

• A)$830.
• B)$1,025.
• C)$1,090.
• D)$1,345.

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Definitions:

Regression Toward

A statistical phenomenon where extreme values in data are likely to be followed by, or associated with, less extreme values.

Pretest

An initial measurement or evaluation performed before an intervention or experiment to establish a baseline.

Posttest

A test given after a particular intervention or period of instruction to measure its effectiveness or outcomes.

Construct Validity

The extent to which a test or instrument measures the theoretical construct it is intended to measure.