Choose one question to answer out of the 3. *2. Chinese demand for oil, iron ore
ID: 1249368 • Letter: C
Question
Choose one question to answer out of the 3.
*2. Chinese demand for oil, iron ore and a wide range of raw materials is increasing rapidly. The amount of such materials of course is limited and we can anticipate that the world would eventually run out, other factors equal. Why would we expect that in a market economy this would not normally happen? If China does not care about market prices, how does this change the forecast?
3. What is the fundamental problem of monopoly as far as economists are concerned?
*4. Which kind of firm is more likely to practice gender, racial or other discrimination: a perfectly competitive firm, a monopoly or an oligopoly? Why?
Explanation / Answer
We anticipate that our supplies will run out because as the days go by the more of a demand we have for oil and many other raw materials. The Earth only supplies us with so much raw materials that it can not recreate. When we run out of these raw materials we will have to find other substitutes for them.