Suppose That in 2019 Canada's Automobile Manufacturers Produced 2 Million

question 91

Multiple Choice

Suppose that in 2019 Canada's automobile manufacturers produced 2 million cars priced at $20 000 each; in 2020 they produced 1 million cars priced at $40 000 each.Ceteris paribus,the change in nominal national income is

• A)a decrease because fewer cars were produced.
• B)an increase because the price of each car increased.
• C)insufficient information to know.
• D)no change in nominal national income.
• E)an increase because of inflation.

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Definitions:

Incentive

An incentive is a motivational factor or reward that encourages people to perform an action or adopt a behavior.

Room And Board

A combination of housing (room) and meals (board) typically provided as part of compensation or in a collegiate setting.

Scarce Resources

Natural, human, and man-made inputs that have limited availability and are used for the production of goods and services.

Efficiency

The optimal use of resources to achieve the desired outcome with minimum waste or effort.