In a Free Market for Depletable Natural Resources, Any Shortage

question 2

Multiple Choice

In a free market for depletable natural resources, any shortage where there is an excess of quantity demanded over quantity supplied must be

• A)temporary.
• B)due to a price floor.
• C)the result of discovery of new deposits of the resources.
• D)due to a price ceiling.

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Definitions:

Franchisor's Name

The legal name of the entity that grants the license to a franchisee for the conducting of a business under the franchisor's trademarks and business model.

Installment Sales Method

An accounting technique for recognizing revenue and expenses for sales made on credit, proportionate to the cash collected from the customer.

Cost Recovery Method

An accounting technique used to recognize revenue only after all costs are recovered.

Gross Profit

The difference between the sales and the cost of goods sold, representing the basic profitability of the products or services sold.