Assume That a Small Country Produces Only Green Peppers and Red

question 58

Multiple Choice

Assume that a small country produces only green peppers and red peppers.Last year,it produced 100 green peppers and 50 red peppers and sold them at prices of $2 per green pepper and $3 per red pepper.This year,it produced 150 green peppers and 60 red peppers and sold them at prices of $2 per green pepper and $4 per red pepper.What is real GDP this year if the base year is last year?

• A)$540
• B)$400
• C)$890
• D)$350
• E)$480

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Definitions:

Regression Analysis

A statistical process for estimating the relationships among variables.

Estimated Regression Equation

An equation derived from regression analysis that predicts the dependent variable based on the values of one or more independent variables.

Y-Intercept

The point at which a line or curve intersects the Y-axis of a graph.

Regression Source Table

A table containing statistical information that summarizes the output of a regression analysis.