Suppose Over the Last Year That the Price of Iron

question 259

Multiple Choice

Suppose over the last year that the price of iron ore increased from $1,200 a ton to $1,300 a ton. Over the same time a measure of the overall price level increased from 168 to 187. The price of iron ore increased by

• A)less than inflation, and this means it became relatively less scarce.
• B)less than inflation, and this means it became scarcer.
• C)more than inflation, and this means it became scarcer.
• D)more than inflation, but this doesn't necessarily mean that it become scarcer.

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Definitions:

Detrimentally Relied

A legal principle where a party suffers a loss due to reliance on a promise or statement of another.

Donee Beneficiary

A third party who benefits from a contract between two other parties, especially in the context of gifts or donations.

Incidental Beneficiary

A third party who benefits from a contract between two other parties, but has no rights to enforce the terms of the contract or claim damages for its breach.

Corporate Beneficiary

An entity that is designated to receive benefits or proceeds from a legal instrument, such as a trust, will, or insurance policy, in a corporate context.