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BUS502 Principles of Economics for Accountants- International Gold Mar

Questions:

Read the article and answer the questions in the spaces below. Use full sentences and complete the diagrams but do not use more space than is given here. 

 (1) “As soon as demand begins to overwhelm supply, then it’s “game on”. Complete the diagram below and explain the consequences of the above scenario on the gold market.

(2) According to Rickards “gold is a form of money”. With reference to the principal functions of money, to what extent is Rickards right.

(3) “This year we could see decrease in global production” Explain how, using the diagram below, this scenario would affect the price of gold.                                                                                       

(4) Based on the information provided in the article do you think that the gold market is a perfect competitive market  Why or why not (Your answer should analyse the main points of this type of market).


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