The country of Aceland produces two goods, televisions and computers. Last year, it produced 200 televisions and 500 computers. This year, it produced 250 televisions and 600 computers. Given no other information, which of the following events could not explain this change?
a. Aceland experienced a reduction in unemployment.
b. Aceland experienced an improvement in computer-making technology.
c. Aceland acquired more resources.
d. Any of these events could, in fact, explain the change.
The correct answer and explanation is :
Correct Answer: D. Any of these events could, in fact, explain the change.
Explanation:
Aceland’s production of both televisions and computers has increased. This suggests that the economy has expanded its productive capacity in some way. Let’s analyze each of the given options to see if any of them could not explain this change.
- Reduction in Unemployment (Option A)
If Aceland had unemployed resources (such as labor and capital) in the previous year, reducing unemployment would allow it to use those resources more efficiently. This would lead to an increase in the production of both goods. Since both televisions and computers saw an increase in production, reducing unemployment could have contributed to this change. - Improvement in Computer-Making Technology (Option B)
A technological improvement in the production of computers would typically allow Aceland to produce more computers without necessarily affecting the production of televisions. However, if the technological advancement led to greater overall economic efficiency (e.g., freeing up labor or capital), Aceland might also be able to increase television production. Thus, this could also explain the change. - Acquiring More Resources (Option C)
If Aceland acquired more resources, such as labor, capital, or raw materials, it would be able to produce more of both goods. This directly explains the increase in both televisions and computers.
Since all three factors—reducing unemployment, improving technology, and acquiring more resources—can lead to an increase in production, there is no single event that could not explain the change. Therefore, the correct answer is D: Any of these events could, in fact, explain the change.