Question

If natural resources had become scarcer, then we would expect their a. prices to have risen more than inflation as they have. b. prices to have risen more than inflation, but they have not. c. known quantities to have fallen as they have. d. known quantities to have fallen but they have not.

Answer 1

B. prices to have risen more than inflation, but they have not.

Step-by-step explanation:

Natural resources are simply put, free gift of nature. They are naturally occurring resources that exists without the actions or manipulations of humans. The natural resources existing are either biotic or abiotic. Scarcity refers to limited resources. It's a phenomenon whereby there's shortage in the supply of resources or product. Just like every other resources, if natural resources becomes scarce, it obviously indicates a shortage in the supply of those resources leading to the expected increases in the prices of those resources. However, natural resources have not become scarcer.