The Invention of Machinery That Can Double the Amount of Gold

question 55

Multiple Choice

The invention of machinery that can double the amount of gold extracted from raw ore will likely lead mining companies to

• A)raise the world price of gold to pay for the new machinery.
• B)lower the world price of gold because any amount can now be produced more cheaply.
• C)raise the world price of gold because miners' wages must double as their productivity doubles.
• D)lower the world price of gold only if new mining companies are not allowed to enter the industry.

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Definitions:

Prices on Imports

The cost at which goods are brought into one country from another, which may include additional fees like tariffs and taxes.

Ethics of Protectionism

The moral principles governing policies designed to restrict international trade to protect local industries from foreign competition.

Competitive Advantage

The attribute that allows an organization to outperform its competitors, including cost structure, product offerings, brand reputation, and customer loyalty.

Tariffs

Taxes imposed on imported goods, which can affect international trade by increasing the cost of goods and services.