Which of the Following Explains Why Resource Prices Are Often

question 69

Multiple Choice

Which of the following explains why resource prices are often the slowest prices to adjust?

• A) Resource prices are not affected by inflation.
• B) Resource prices are often set by lengthy contracts.
• C) Resource prices are often set by governments.
• D) Resource prices are not reported in the consumer price index (CPI).
• E) Resource prices are all tied to inflation.

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Definitions:

Shareholders

Individuals or entities that own shares in a corporation, giving them partial ownership and possibly a right to vote at shareholders' meetings.

Capital Employed

The total amount of capital used for the acquisition of profits by a firm or project, including assets and working capital.

Debt

An obligation owed by one party to a second party; in financial terms, it typically refers to money borrowed by one party from another.

Capital Employed

Capital employed refers to the total amount of capital used for the acquisition of profits by a firm or project. It is typically the value of all assets employed in a business.