To Say That There Is a Scarcity of Gold Means

question 32

Multiple Choice

To say that there is a scarcity of gold means that:

• A)gold prices will fall in the future.
• B)there is not enough gold to satisfy people's demand for it at a zero price.
• C)there are very few substitutes for gold.
• D)gold is very expensive.
• E)the demand for gold is changing.

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Definitions:

Colas

Cost-of-living adjustments (COLAs) are automatic adjustments made to salaries, wages, or benefits to counteract the effects of inflation.

Marginal Utility

The increase in happiness or usefulness experienced by a consumer when one more unit of a good or service is consumed.

Good A

A placeholder term that typically represents a general or unspecified item in economic models or discussions.

Good B

A term representing a specific product or service under consideration in an economic model or market analysis.