Which Statement Best Explains the Falling Inflation-Adjusted Prices of Most

question 149

Multiple Choice

Which statement best explains the falling inflation-adjusted prices of most of the natural resources?

• A) Most are renewable; therefore, the supply of natural resources is increasing.
• B) Our ability to conserve natural resources is increasing faster than their depletion.
• C) The demand for natural resources is diminishing due to the discovery of new substitutes.
• D) New deposits of natural resources have been discovered in emerging markets.

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Definitions:

Liability

A financial obligation or amount owed by a business or individual to others, which must be settled in the future.

Goodwill

An intangible asset that arises when a business is purchased for more than the fair value of its net identifiable assets.

Acquisition

The process by which a company purchases most or all of another company's shares or assets, in order to take control or ownership of that company.

Fair Value

The cost expected to be received for an asset sale or to be paid for transferring a liability during a well-organized interaction between market actors as of the valuation moment.