Question

Nigeria's government invested money into technology. This investment led to a new machine which makes it easier to refine crude oil. What impact will this machine have on Nigeria's gross domestic product (GDP)?
A) The GDP will decrease because oil will become cheaper.

B) The GDP will increase because Nigeria will be able to produce more oil

С) The GDP will increase because Nigeria will be able to diversify its workforce.
D) The GDP will decrease because fewer industrial workers will be needed to produce oil

Answer 1

Answer:

B) The GDP will increase because Nigeria will be able to produce more oil

Explanation:

The introduction of a new technology would result in an increase in the volume of crude oil being produced by the nation. This in turn will improve the net exports of the government which would increase the gross domestic product of the country.

Gross domestic product is the total market value of the goods and services produced by a country within a specified period. It is calculated by summing up consumption, investment, government spending, and net exports.