Multiple choice

In 1985 country X earned $I00 million from its steel exports. By 2005 revenue from steel exports doubled and in 2008 it reached an amount of $300 million.

Each of the following explains the increase in revenue except that:

  1. the quantity of steel exported from country X has increased in the past two decades

  2. the price of steel per ton has increased substantially

  3. the cost of raw material for manufacturing steel has suddenly dropped

  4. the total number of steel producing units in the country has increased

  5. steel production in the country has remained stable between 1985 and 2008
Reveal answer Fill a bubble to check yourself
E Correct answer
Explanation

Correct answer. Production remaining stable during this period is a sign of stagnation and cannot explain the substantial increase in revenue. This option does not explain the increase in earnings.

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