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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