Question

A country produces two goods, gadgets and widgets. Last year the country produced 15,000 gadgets and 12,000 widgets. This year it produced 17,500 gadgets and 12,000 widgets. According to an economist, a reasonable explanation of this change is the country experienced a decrease in unemployment.

True
False

Answer 1

Answer: False

The change in the production of goods doesn't necessarily indicate a decrease in unemployment. There could be various factors at play, like changes in demand, technological improvements, or shifts in market conditions. It's important to consider multiple factors when analyzing changes in production. If you have more economics questions or anything else you're curious about, feel free to ask!