SCENARIO: DEMAND AND SUPPLY FOR IRON ORE

question 66

Multiple Choice

SCENARIO: DEMAND AND SUPPLY FOR IRON ORE
The table supplied represents a demand and supply
Schedule for a small­country producer of iron ore.It sells
Output in its home market and on the world market at the
World price of $70 per ton.

(Scenario: Demand and Supply for Iron Ore) What price will
Domestic iron ore consumers pay for their iron ore
Purchases when there is a $10­per­ton export subsidy?

• A)$10 per ton
• B)$60 per ton
• C)$70 per ton
• D)$80 per ton

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Definitions:

Instrumental Value

The utility or usefulness of something in achieving a goal or fulfilling a purpose.

Utilitarian View

A perspective in ethics that holds that the best action is the one that maximizes utility, often defined as that which produces the greatest well-being of the greatest number of people.

Ethical Understanding

involves comprehending moral principles and values, enabling individuals to make decisions that consider the welfare of others and the broader society.

Reasoning Abilities

The cognitive capacity to process information, draw conclusions, and make logical decisions.