20
practice examMultiple Choice

Practice Exam

Question 20 • Economics

What happens if a country faces a shortage of raw materials?

Answer
A
The sellers will hire more labor to compensate for raw materials.
B
The sellers will halt the production of the product.
C
The sellers will invest more capital to compensate for raw materials.
D
The sellers will provide high-quality products at the same price.

Explanation

Raw materials are necessary inputs for making a product. If a country cannot obtain enough of them, sellers may not have the materials needed to continue production, so they will halt production. Hiring more workers or investing more capital cannot directly replace missing raw materials.

AI-written and checked against the verified answer.

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