Use the Following Information to Answer the Next Several Questions

question 80

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 2015, the economy produced 70 flashlights and 40 fishing lures, and the prices of flashlights and fishing lures were $5 and $12, respectively. In 2016, 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, real GDP in 2016 (in 2015 dollars) in this economy was

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

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Definitions:

Business Cycles

Business cycles refer to the fluctuations in economic activity that an economy experiences over a period, characterized by expansion and contraction phases.

Labour Mobility

The extent to which workers can move easily between jobs, locations, or industries, influenced by factors such as regulations and qualifications.

Turnover

The rate at which employees leave a company and are replaced by new hires over a certain period.

SWOT Analysis

A tool for strategic planning that helps pinpoint the Strengths, Weaknesses, Opportunities, and Threats associated with competing in business or planning a project.