As Resources Move from Low-Valued Uses in a Resource Market

question 157

Multiple Choice

As resources move from low-valued uses in a resource market to highly-valued uses in another resource market, the price paid to the resource in the highly-valued market will

• A)not be affected, if the change is temporary
• B)increase, if the change is temporary
• C)remain the same
• D)decrease
• E)increase, if the change is permanent

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Definitions:

Quotas

Restrictions imposed by a government on the quantity of a good that can be imported or exported during a specific period.

Tariffs

Taxes imposed by a government on imported goods to protect domestic industries or raise revenue.

International Trade

The exchange of goods, services, and capital between countries and territories.

Economically Advanced

Describes countries or regions with high levels of income, sophisticated infrastructure, and a diverse economy, often synonymous with developed countries.