A New Technology Is Discovered That Results in All New

question 211

Multiple Choice

A new technology is discovered that results in all new cars producing 50 percent 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)Real GDP is not affected.
• C)Nominal GDP increases to reflect the improvement in the health of the population.
• D)Real GDP decreases to reflect the decrease in pollution.
• E)Nominal GDP does not change and real GDP increases.

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Definitions:

Ecosystems

Complex networks of living organisms and the physical environments in which they interact, encompassing both biotic and abiotic components.

Nutrients

Substances that provide nourishment essential for growth and the maintenance of life.

Vegetation

All the plants and trees in an area, serving as a critical foundation for most terrestrial ecosystems.

Terrestrial Ecosystem

This refers to a community of organisms and their physical environment interacting together on land.