The Fact That an Ounce of Gold Is Priced Higher

question 104

Multiple Choice

The fact that an ounce of gold is priced higher than an ounce of chocolate suggests that

• A)the marginal utility of the last unit of gold consumed or purchased is greater than the marginal utility of the last unit of chocolate consumed.
• B)the total utility of gold purchased is greater than the total utility of chocolate consumed.
• C)gold is a normal good, while chocolate is an inferior good.
• D)there are many substitutes for chocolate but few for gold.

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Definitions:

International Trade

The exchange of goods and services between countries.

Equilibrium Price

The market price at which the supply of an item equals the quantity demanded, leading to a stable market condition without surplus or shortage.

China

A populous country in East Asia, known for its ancient civilization and as a major economic and political power in the modern world.

Trade Restrictions

Regulations or policies that limit international trade, often imposed to protect domestic industries from foreign competition.