As a competitive economy uses its stocks of a depletable resource,
A. the resource price will fall by ever greater amounts each year.
B. the resource price will rise by ever greater amounts each year.
C. the use of the resource will increase at an increasing rate.
D. resource use will drop to zero.
Answer: B
You might also like to view...
Refer to Figure 16-7. Given that the economy has moved from A to B in the graph above, which of the following would be the appropriate fiscal policy to achieve potential GDP?
A) decrease interest rates B) increase government spending C) contractionary fiscal policy D) increase taxes
Refer to Table 2.3. Assume that 2010 is the base year. Real GDP in 2010 is
A) $490.00. B) $580.00. C) $671.00. D) $812.00.
Which of the following statements best describes Social Security benefits?
a. Since the passage of the Social Security Indexing Act of 1972, the level of Social Security benefits increases each year along with the Producer Price Index. b. Since the passage of the Social Security Indexing Act of 1972, the level of Social Security benefits increases each year along with the Consumer Price Index. c. Since the passage of the Social Security Indexing Act of 1972, the level of Social Security benefits increases at a fixed percentage each year. d. Since the passage of the Social Security Indexing Act of 1972, the level of Social Security benefits increases based on the Prime Rate.
Y = C + I + G + NX is an identity because
a. each symbol identifies a macroeconomic variable. b. the right-hand and left-hand sides are equal when an equilibrium is reached. c. the equality holds due to the way the variables are defined. d. None of the above is correct.