Because of China's Growth,natural Resources

question 5

Multiple Choice

Because of China's growth,natural resources

• A)are in greater demand, but that demand is mostly going to the previously industrialized nations so it is having little effect on economic development in developing countries.
• B)are in greater demand and the natural resources are increasingly coming from developing countries.
• C)prices are falling since China has tremendous negotiating power.
• D)are not in high demand since labor and capital are the emphasized inputs in Chinese manufacturing.

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Definitions:

Collusion

An agreement, usually illegal, between rivals in which they decide not to compete with each other, often resulting in higher prices or restricted supply of products or services.

Rule-of-thumb

A practical principle that is not strictly accurate in all cases but is sufficient for most circumstances.

Price Elasticity

A measure of how much the quantity demanded of a good responds to a change in its price, indicating the sensitivity of consumers to price changes.

Elastic

Describes a situation where the quantity demanded or supplied of a good responds significantly to changes in its price.