In the Country of Losan, Majority of the Population Is

question 34

Multiple Choice

In the country of Losan, majority of the population is employed in the manufacturing sector. However, as the nation's overall income is low, little demand exists within Losan for the manufactured products. Yet, the government of Losan keeps its currency valuation quite low to ensure that:

• A) Losanian goods are comparatively cheaper in the world market.
• B) the currency can be abandoned easily for a higher value currency.
• C) Losanian goods create more competition in the world market with their high prices.
• D) limited number of manufacturing jobs are created in Losan.

---

Definitions:

Lower Labor Productivity

A condition where there is a decrease in the amount of goods or services produced per unit of labor.

Technology Production

The process of designing, manufacturing, and introducing new technological goods or services.

Equilibrium Price

The cost at which the volume of goods available equals the volume desired by buyers in the market.

Equilibrium Quantity

The quantity of a good or service demanded and supplied at the equilibrium price, where market supply and demand balance each other.