In Which of the Following Cases Can We Be Certain

question 147

Multiple Choice

In which of the following cases can we be certain that a natural resource has become scarcer?

• A)both the demand for the resource and the supply of the resource have increased
• B)both the demand for the resource and the supply of the resource have decreased
• C)demand for the resource is unchanged and the supply of the resource has increased
• D)the demand for the resource has decreased and the supply of the resource is unchanged

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Definitions:

Convertible Bond

A type of corporate bond that can be converted into a pre-specified amount of the issuing company's equity at certain times during its life, usually at the discretion of the bondholder.

Bond Principal

The face value of a bond, or the amount of money the issuer promises to repay the bondholder at the time of maturity, not including interest payments.

Real Rate

The inflation-adjusted interest rate, representing the actual cost of borrowing or the genuine return on an investment.

Buying Power

The amount of goods or services that can be purchased with a unit of currency or by consumers, reflecting the value of money.