Answer the following statement true (T) or false (F)
1) Nonrenewable natural resources are fixed in supply (actually or virtually).
2) Assuming that interest rates are positive, the present value of an $80 barrel of oil in two years
is less than an $80 barrel today.
3) Present value allows us to weigh the benefits and costs of using resources today or in the
future.
4) The user cost of a resource is the market price paid by the buyer of the resource.
1) T
2) T
3) T
4) F
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Refer to the table above. At what rate did the country grow between 2005 and 2006?
A) 15.95% B) 12.45% C) 18% D) 16.33%
Import quotas on sugar result in lower sugar prices in the United States
a. True b. False
Mountain bikers and rollerbladers share the only trail in a city park. The city allows everybody into the park and onto the trail. The mountain bikers say the rollerbladers are a hazard to them; the rollerbladers say it's the other way around. Frequently there are collisions and many injuries occur. Which of the following ways of dealing with the problem does not implicitly grant someone a
property right? a. Allow bikers to use the trail on odd-numbered days and rollerbladers to use it on even-numbered days. b. Allow bikers to use the trail in the morning and rollerbladers to use it in the afternoon. c. Allow only bikers in the park because they have invested in the more expensive sports equipment. d. Kick everybody out of the park. e. Build another trail, put rollerbladers on one and bikers on the other, and give bikers the right-of-way at intersections.
What is the term for a price index that measures average prices of all goods and services included in the economy?
a. Real value b. Nominal value c. GDP deflator d. GDP inflator