If the Price of a Natural Resource Is Expected to Rise

question 52

Multiple Choice

If the price of a natural resource is expected to rise at a rate that exceeds the interest rate,demand ________ and supply ________.

• A)decreases;increases
• B)increases;decreases
• C)increases;increases
• D)decreases;decreases
• E)increases;does not change

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Definitions:

Domestic Advantage

The competitive edge a company gains by operating within its home country, benefiting from familiar market conditions and regulations.

Comparative Advantage

The ability of a country, individual, company, or region to produce a good or service at a lower opportunity cost than its competitors.

Absolute

A term indicating complete or total, often used to signify purity, unconditioned reality, or an unchangeable fact.

Competitive

Describes a situation where businesses or individuals contest against each other to achieve leadership, market share, or win over customers.