Question

Indiadesh is a country that produces two goods, textiles and computers. Last year, Indiadesh produced 500 textiles and 1300 computers. This year it produced 450 textiles and 1100 computers. Given no further information, which of the following events could explain this change?
1.Indiadesh decreased unemployment.
2.Indiadesh experienced an improvement in textile-making technology.
3.Indiadesh experienced an improvement in computer-making technology.
4.Indiadesh experienced a reduction in resources

Answer 1

Answer:

The correct answer is option 4.

Explanation:

A country named Indiadesh produces two goods, textiles and computers.  

The country produced 500 textiles and 1,300 computers in the previous year.  

While in the current year, it produced only 450 textiles and 1100 computers.  The production of both goods has declined.  

This reduction can be because of a decrease in the availability of resources.  

A decrease in unemployment implies an increase in employment. This would have output to increase not decline.  

An improvement in the textile making technology would have caused textile production to increase.  

Similarly, an improvement in the computer making technology would have caused computer production to increase.