Greater Scarcity of a Natural Resource Is Indicated

question 155

Multiple Choice

Greater scarcity of a natural resource is indicated

• A)by an increase in the price of the resource,whether the price increase is less than or greater than the rate of inflation.
• B)only by an increase in the price of the resource that is less than the rate of inflation.
• C)only by an increase in the price of the resource that is greater than the rate of inflation.
• D)only by an increase in the price of the resource that is caused by a decrease in supply and is greater than the rate of inflation.

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Definitions:

Equity Method

An accounting technique used by a company to record its investment in another company when it has significant influence but not full control over that company.

Net Income

The total profit of a company after all expenses, including taxes and costs, have been deducted from total revenue.

Equity Method

The equity method is an accounting technique used to assess the investments in other companies, where the investment is recorded at original cost and adjusted according to the investor’s share of the investee's profit or loss.