If one adopts a pure free-market approach to depletable resources, then one can expect the price of resources to
A. rise steadily.
B. fall steadily.
C. fluctuate in a random-walk fashion.
D. remain unchanged.
Answer: A
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Explain the difference between consumption and capital goods
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Which of the following statements regarding the gross domestic product is true? a. It is useful in comparing the overall performance of different economies at the same time
b. It measures aggregate income in an economy over a period of ten years. c. It measures the value of all goods and services produced in the world during a given period. d. It is a measure of an economy's price level during a particular year. e. It records the cumulative value of all goods and services produced by domestically owned factors of production.
If the elasticity of supply coefficient for a good is 6, we know:
a. that for every 1% increase in quantity, there will be a 6% increase in price. b. that for every 1% increase in quantity, there will be a 6% decrease in price. c. that for every 6% increase in quantity, there will be a 1% increase in price. d. that for every 6% increase in quantity, there will be a 1% decrease in price.
Premiums based on experience ratings:
a. are illegal in most states in the U.S. b. vary depending on the income of the insured. c. are uniform across age groups. d. are only used in property-casualty insurance underwriting. e. are based on the loss experience of the insured group.