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.

---

Definitions:

HIV

The Human Immunodeficiency Virus is a pathogen that assaults the body's defense mechanisms, potentially progressing to acquired immunodeficiency syndrome (AIDS) if it remains untreated.

Breast Milk

The milk produced by a woman's breasts after childbirth, providing essential nutrients and antibodies to infants.

Pre-Eclampsia

A life-threatening disease that can afflict pregnant women. It is characterized by high blood pressure.

Prenatal Care

Medical and healthcare provided to expectant mothers during pregnancy to ensure the health of both the mother and the fetus.