A New Technology Is Discovered Which Results in All New

question 239

Multiple Choice

A new technology is discovered which results in all new cars producing 50 percent less pollution.Which of the following is true?

• A)GDP will increase to reflect the fact that the air we breathe is cleaner.
• B)GDP will increase if there is an increase in the production cost and price of the car.
• C)GDP increases anytime pollution is reduced.
• D)GDP will decrease.
• E)Real GDP increases because the air is cleaner,but nominal GDP does not change since air is free.

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Definitions:

Patent

A government authority or license conferring a right or title for a set period, especially the sole right to exclude others from making, using, or selling an invention.

Medical Use

Refers to the utilization of drugs, procedures, therapies, or devices to treat or manage a health condition.

Fingernail-Sized

A descriptive term indicating something very small, roughly the size of a human fingernail.

Treble Damages

A form of punitive damage awarded in a legal proceeding, where the damages are tripled as a deterrent to wrongful conduct.