For the Following Question(s), Suppose an Economy Produces Only Pens

question 58

Multiple Choice

For the following question(s) , suppose an economy produces only pens and pencils, and that the quantity and price data is given by
this table: $$\begin{array} { | l | l | l | } \hline & \text { Pens } & \text { Pencils } \\\hline \text { Year 1 quantity } & 15 & 10 \\\hline \text { Year 1 price } & \$ 12 & \$ 12 \\\hline \text { Year 2 quantity } & 17 & 12 \\\hline \text { Year 2 price } & \$ 14 & \$ 15 \\\hline\end{array}$$
-What is the real GDP in year 1 using base year 2?

• A)$360
• B)$418
• C)$294
• D)$300
• E)$338

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Definitions:

Cognitive

Pertaining to the mental processes of perception, memory, judgment, and reasoning.

Emotional

Related to feelings, moods, and affective states of a person, often influencing behavior and thought processes.

Physical

Relating to or concerning the body as opposed to the mind or spirit.

Psychological

Relating to the mind or mental processes and how they influence behavior, emotions, and cognition.