The Demand for a Resource Is Generally More

question 66

Multiple Choice

The demand for a resource is generally more

• A) elastic in the short run because it takes time to alter the ratio of resources used in many production processes.
• B) inelastic in the short run because it takes time to alter the ratio of resources used in many production processes.
• C) elastic in the short run because an increase in the price of the resource may not be expected to last.
• D) inelastic in the short run because once resource suppliers find out they can charge a higher price, they will do so in the long run.

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Definitions:

Maturity at Issue

The predetermined date when a financial instrument, such as a bond, will come due and the principal is to be paid back to investors.

Default Risk

The potential risk that an issuer of a bond or other debt security will be unable to make principal and interest payments when due.

Collateral Trust Bond

A type of bond that is secured by a pledge of collateral, typically securities, placed under the trust of a third party.

Securities

Financial instruments representing ownership (stocks), a debt agreement (bonds), or rights to ownership (derivatives) that can be bought and sold in financial markets.