Economic Theory Posits That a Resource Which Is Finite and Being

question 47

Multiple Choice

Economic theory posits that a resource which 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.

---

Definitions:

Theory of Competition

An economic theory that describes how individuals and firms compete within a market to maximize their benefits, usually through price, quality, and innovation.

Cyclical Theory

A theory suggesting that events or phenomena occur in predictable cycles, often applied to economics and history.

Conflict Theory

A sociological perspective that views social life as a competition for scarce resources, emphasizing the role of power and inequality in causing social conflict and change.

Value-Added Theory

A sociological theory related to social movements, suggesting that certain conditions must be met for collective behavior to emerge, leading to social change.