Commodity-Pricing Data from the Economist Show a Dramatic Long-Run Decline

question 98

Multiple Choice

Commodity-pricing data from The Economist show a dramatic long-run decline in 25 important real commodity prices from 1850 to 2015. This decline primarily occurred because the

• A) demand for commodities decreased drastically.
• B) supply of commodities grew faster than demand.
• C) demand for commodities has remained stable over the years.
• D) supply of commodities increased, while demand increased even more.

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Definitions:

Legitimate Business Purpose

A reasonable, lawful reason for engaging in a particular business activity or decision.

Uniform Commercial Code

A comprehensive set of laws governing all commercial transactions in the United States, intended to standardize laws across the states.

Unconscionable

A term used to describe an action or a contract clause that is so unjust or overwhelmingly one-sided in favor of one party that it is contrary to good conscience.

Noncompete Clause

A contract provision that prohibits an employee from working for or becoming a competitor for a certain period after leaving a company.