The real income of domestic producers and consumers can be increased by ?
Correct answer: C. Technological Progress and international trade
- A. Technological progress, but not international trade
- B. International trade but not technological progress
- C. Technological Progress and international trade
- D. Neither technological progress nor international trade
Explanation
Technological progress raises productive efficiency, while international trade permits specialization and access to goods at lower opportunity cost. Both can therefore increase real national income, although their gains may not be distributed equally among producers.
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Individual consumers, firms and markets are examined through demand and supply, elasticity, consumer choice, production, costs, revenue and the determination of prices and output. The topic also covers market structures such as perfect competition, monopoly and oligopoly, plus market failure, externalities and the distinction between microeconomic decisions and economy-wide outcomes.
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