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:

Consumer Surplus

The gap in the total amount consumers are ready and capable of investing in a service or good and the actual outlay they make.

Maximum Price

A price ceiling set by a governing body, above which a particular good or service cannot be sold to prevent prices from becoming prohibitively high.

Actual Price

The price at which a good or service is sold in the market, as opposed to its listed or theoretical price.

Producer Surplus

The difference in the expected remuneration by producers for offering a good or service and the actual revenue they secure.