Economic Theory Posits That a Resource That Is Finite and Being

question 39

Multiple Choice

Economic theory posits that a resource that is finite and being depleted will rise in price continuously and demand will be reduced.In fact, a recent study, graphing the price behavior of lead, zinc, and copper found that until about 2007,

• A)prices rose steadily, as predicted.
• B)prices dropped precipitously.
• C)prices remained remarkably stable.
• D)prices were up and down with no discernible pattern.

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Definitions:

Trade Deficit

A situation where a country's imports of goods and services exceed its exports, leading to a net outflow of domestic currency to foreign markets.

Remained

Stayed in the same place or condition; continued to be.

Doubled

Increased by 100 percent or made twice as large in size, amount, or number.

Quadrupled

To increase fourfold, or to become four times as large in quantity or value.