THE VIRGINIA DYNASTY 1801 1825
WAR OF 1812
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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The value of gold fell sharply due to increased supply.
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Methods of transportation to California were greatly improved.
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American Indians were attacked and forcefully removed from their lands.
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Rivers and lakes were polluted by mining operations.
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Detailed explanation-1: -Gold prices, like any other good or service, are subject to the laws of supply and demand: (i) the higher the price, the lower the quantity demanded, and (ii) the higher the price, the higher the quantity supplied. Equilibrium, which is where demand and supply interact, then determines the market price.
Detailed explanation-2: -Demand and Supply: When there is a rise in demand for gold, the price increases, and vice versa. Gold is one commodity that is continuously in demand. Demand and supply play a major role in pricing of gold.
Detailed explanation-3: -As a result, gold is often seen as a hedge against inflation. Inflation is when prices rise, and by the same token, prices rise as the value of the dollar falls. As inflation ratchets up, so does the price of gold.
Detailed explanation-4: -Gold’s role in socio-economic development As well as direct and indirect jobs, gold mining also brings foreign direct investment and tax revenues to countries. Often operating in remote locations, gold mining companies invest in infrastructure and utilities.