There Is About Half a Million Dollars of Gold in Every

question 10

Multiple Choice

There is about half a million dollars of gold in every cubic kilometer of ocean. Why is it not mined?

• A) Mining gold would pollute the global oceans.
• B) The global market for gold has diminished.
• C) The mining technology is not economically feasible.
• D) International law of the sea prohibits mining.
• E) All of these are reasons why it is not mined.

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Definitions:

Marginal Cost Curve

A graphical representation showing how the cost of producing one additional unit of a good varies as production increases.

Industry Supply

The total amount of a product or service that all producers in a market are willing and able to sell at a given price.

Price Floor

A government-imposed limit on how low a price can be charged, usually above the equilibrium price, which can prevent the market from clearing.

Price Ceiling

A government-imposed limit on how high a price can be charged for a product, service, or resource, usually intended to protect consumers from prices deemed excessively high.