Suppose Technological Improvements Reduced the Cost of Producing Automobiles by 50

question 13

Multiple Choice

Suppose technological improvements reduced the cost of producing automobiles by 50 percent, causing the price of automobiles to decline by a similar amount. Which of the following would necessarily result from this development?

• A) Employment in the automobile industry would decrease.
• B) Real income would increase.
• C) Real income would decrease.
• D) Both a and c are correct.

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Definitions:

Urban Farming

The practice of cultivating, processing, and distributing food in or around urban areas, aiming to reduce food miles and increase food security.

Internet-Based Resources

Materials or tools accessible via the internet, including websites, databases, and applications, which support various activities and tasks.

Crowdfunding Campaign

A method of raising capital through the collective effort of friends, family, customers, and individual investors on the internet.

Investor Model

A framework or strategy used by investors to allocate their funds in various ventures, often based on risk assessment, potential returns, and market analysis.