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:

Current Account Deficit

A situation where a country's total imports of goods, services, and transfers is greater than its total exports, indicating that it is spending more on foreign trade than it is earning.

British Pounds

The official currency of the United Kingdom, which is also known as Sterling.

Floating Exchange Rate

An exchange rate determined by the demand for and the supply of a nation’s currency.

Gold Standard

A monetary system where a country's currency or paper money has a value directly linked to gold; countries committed to convert paper money into a fixed amount of gold upon request.