Under perfect competition the price of a depletable resource whose cost of extraction is not changing must rise at
a. the same rate as the increase in GDP.
b. the same rate as the increase in consumer prices.
c. the same rate as the rate of interest.
d. a rate higher than the increase in the rate of interest.
c
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Rate of return regulation will
a. always result in the firm producing the quantity that would be produced if the market were competitive. b. always result in the firm producing less than the quantity that would be produced if the market were competitive. c. always result in the firm producing more than the quantity that would be produced in a competitive industry. d. result in a new equilibrium with either more or loss produced in comparison to a competitive market.
A worker's marginal revenue product depends upon his average product
a. True b. False Indicate whether the statement is true or false
A U.S. company begins selling its products in France. Despite brisk sales, the company doesn't make enough profit to cover its expenses. When setting prices, the company simply used the same prices in both countries. For example, $5.99 = 5.99 French francs; $2.89 = 2.89 French francs. What risk of international business did the company not consider?
A. Language variations B. Currency fluctuations C. Differences in laws D. Opportunity costs
Which of the following is true of an economic union?
A. Free movement of resources, but restricted movement of goods among the member countries B. Free movement of goods, but restricted movement of resources across the member countries C. Harmonization of all economic policies in the member countries D. The members have a common set of tariffs among themselves but the external tariff rates are determined independently.