A New Technology Is Discovered That Results in All New

question 38

Multiple Choice

A new technology is discovered that results in all new cars producing 50 per cent less pollution.The technology costs nothing to produce and cars do not change in price.As a result of the technology,there is a reduction in the number of visits people make to the doctor to complain of breathing difficulties.Which of the following is true?

• A)Real GDP decreases as a result of fewer doctor services being provided.
• B)Nominal GDP does not change and real GDP increases.
• C)Nominal GDP increases to reflect the improvement in the health of the population.
• D)Real GDP is not affected.
• E)Real GDP decreases to reflect the decrease in pollution.

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Definitions:

Emphasis

Special importance, value, or prominence given to something.

Diversity

The inclusion of individuals from different backgrounds, cultures, ethnicities, genders, sexual orientations, and beliefs in a group or organization.

Different Backgrounds

Refers to the diverse origins, cultures, experiences, and perspectives individuals or groups bring to an environment or society.

Strength

The attribute or quality of being strong, capable, or having a high level of competence in a specific area.