If the Countries That Export Bauxite Form a Cartel to Boost

question 4

Multiple Choice

If the countries that export bauxite form a cartel to boost the price of bauxite in order to increase sales revenue, then they believe that the demand for bauxite

• A) is inelastic with respect to price changes.
• B) is elastic with respect to price changes.
• C) will increase in response to a price increase.
• D) will not change in response to a price change.

Understand the need to prepare for a variety of question types on tests.

Develop a constructive approach to analyzing and using test results for improvement.

Understand the roles and obligations of parties involved in certified checks and drafts.

Grasp the identification and significance of numbers on printed checks.

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Definitions:

Diminishing Returns

A decrease in the marginal output of a production process as the amount of a single factor of production is incrementally increased, holding all other factors constant.

Value Added

The amount by which the value of goods or services is increased at each stage of its production, exclusive of initial costs.

Marginal Product

The increase in output resulting from a one-unit increase in the amount of a single input, holding all other inputs constant.

Equilibrium Value

The price or point at which the quantity of a product demanded equals the quantity supplied, leading to market stability.