When Technology Increases the Supply of a Good and Lower

question 31

Multiple Choice

When technology increases the supply of a good and lower prices increase the quantity demanded,

• A) the economy is reallocating resources to achieve an efficient allocation.
• B) consumer surplus falls.
• C) the invisible hand is unnecessary.
• D) the marginal benefit of the good increases with the quantity produced.
• E) the economy is no longer efficient because the quantity changes.

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Definitions:

Eastern Europe

The eastern part of the European continent, which comprises countries that were historically influenced by the Byzantine or Ottoman Empires, and/or were part of the Soviet bloc.

Bretton Woods Conference

A meeting held in 1944 where allied nations agreed on a series of financial and monetary arrangements, leading to the establishment of the International Monetary Fund and the World Bank.

Postwar Capitalist

Refers to the economic system and practices in place in the period following a major war, often characterized by rapid industrial growth and development.

Economic System

The organized way in which a country allocates resources and apportions goods and services in the national community.