In a Simple Economy,there Are 100 Workers

question 20

Multiple Choice

In a simple economy,there are 100 workers.50 workers produce clothing: one worker produces one unit of clothing.The other 50 workers produce food: one worker produces one unit of food.By trading goods,each person consumes 0.5 unit of clothing and 0.5 unit of food.A technological improvement enables one worker to produce two units of clothing.The results are that 40 workers will be producing 80 units of clothing and 60 workers will be producing food and that each person consumes 0.8 units of clothing and 0.6 units of food.Which of the following is true?

• A) Workers in the sewing industry are worse off.
• B) Workers in the clothing industry are worse off.
• C) The increase in the productivity of clothing workers shifted the demand for clothing workers rightward.
• D) The increase in the productivity of clothing workers had a net negative effect on the demand for clothing workers.

---

Definitions:

Training Employees

The process of enhancing the skills, knowledge, and competencies of staff within an organization to improve their job performance.

Business Relationship

A connection between two or more entities involved in commercial transactions or partnerships, characterized by mutual goals, communication, and often, contractual agreements.

Funeral Home

A business establishment that provides services related to the burial, cremation, and memorialization of deceased individuals.

Foreign Markets

The markets outside the domestic boundaries of a country where businesses seek to expand their operations and sales.