If a Resource Is in Fact Becoming Scarcer, Then One

question 86

Multiple Choice

If a resource is in fact becoming scarcer, then one should expect

• A)the price of the resource to rise.
• B)less demand for the resource as people try to conserve.
• C)greater supply as people reduce inventories before it is all gone.
• D)the quantity supplied to increase.

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Definitions:

Monetary Policy

The process by which the central bank or monetary authority of a country manages the supply of money in order to achieve specific goals such as controlling inflation, maintaining employment, and stabilizing the currency.

Interest Rates

The cost of borrowing money or the return on investment for savings, typically expressed as a percentage.

Taxes

Compulsory financial charges or levies imposed by a government on individuals or organizations to fund public expenditures.

Aggregate Demand

The total amount of goods and services that all consumers, companies, and the government are willing to buy at a given price level in an economy.