The Table Given Below Reports the Sales Value at Each

question 11

Multiple Choice

The table given below reports the sales value at each stage of production of the soft drink Pepsi.
Table 5.3
$\begin{array}{|l|c|}\hline {\text { Production Stage }} & \text { Sales Value } \\\hline \text { Sugar cane } & \$ 0.05 \\\hline \text { Processed sugar } & \$ 0.10 \\\hline \text { Wholesale Pepsi } & \$ 0.40 \\\hline \text { Pepsi in a vending machine } & \$ 0.60 \\\hline\end{array}$
-Refer to Table 5.3. Compute GDP according to the income approach if Pepsi is assumed to be the only good produced in the economy.

• A) $1.05
• B) $0.05
• C) $0.20
• D) $0.60
• E) $0.40

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Definitions:

Criterion-related Validity

The extent to which a measure is related to an outcome or criterion, testing how well one measure predicts an outcome for another measure.

Construct Validity

The extent to which a test measures what it claims to be measuring.

Construct Validity

The degree to which a test measures what it claims to be measuring, specifically the ability of a measurement tool to actually measure the theoretical construct it intends to measure.

Criterion-related Validity

The extent to which a test's scores correlate with another measure or outcome that it is theoretically expected to predict.