When a Highly Valued Resource Cannot Be Easily Traded, as Is

question 18

Multiple Choice

When a highly valued resource cannot be easily traded, as is often true with water flowing in a river, then

• A) it will not be hoarded by the rich, but will be available to all on an equal basis.
• B) we can expect shortages from time to time, and conflicts over access to its use.
• C) its price will be low as a result.
• D) markets in the resource will clear more easily, without greed and profit to get in the way.

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Definitions:

Finished Goods

Products that have completed the manufacturing process but have not yet been sold or distributed to the end consumer.

Raw Materials Cost

The expense associated with the raw materials consumed in producing a finished product.

Raw Materials Production Needs

The quantity of raw materials required to meet production targets, taking into account current inventory levels and future production plans.

Finished Goods

Products that have completed the manufacturing process and are ready to be sold.