Suppose an Economy Only Produces Two Goods,robots and Ice Cream

question 196

Multiple Choice

Suppose an economy only produces two goods,robots and ice cream.Last month,the economy produced 10 robots and 200 gallons of ice cream.This month,the same economy produced 15 robots and 240 gallons of ice cream.Which of the following statements could explain this change?

• A)This month,the economy reduced the unemployment of its resources.
• B)This month,the economy experienced an improvement in technology.
• C)This month,the economy experienced an increase in resources
• D)All of the above are correct.

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Definitions:

Steel Industry

A sector of the economy that deals with the production, distribution, and consumption of steel products.

External Costs

External costs refer to the expenses that are not directly accounted for in the purchase price of a product or service, often involving environmental or societal impacts.

Market Price

The ongoing price level for buying or selling an asset or service in the open market.

Market Output

The total quantity of goods and services produced and offered for sale in a market.