When a highly valued resource cannot be easily traded, as is often true with water flowing in a river, then
a. it will not be hoarded by the rich, but will be available to all on an equal basis.
b. we can expect shortages from time to time, and conflicts over access to its use.
c. its price will be low as a result.
d. markets in the resource will clear more easily, without greed and profit to get in the way.
B
You might also like to view...
The cross elasticity between Rolaids and Tums is expected to be:
a. negative. b. positive. c. zero. d. one. e. infinite.
________ refers to any one of several different arrangements that business parties negotiate so that they can trade goods and services with limited or no use of currency.
A) Factoring B) Offset C) Countertrade D) Barter
If the average propensity to consume is initially 0.85, the marginal propensity to consume is 0.75, and real disposable income increases by $1000, the value of saving
A. increases by $250. B. decreases by $250. C. increases by $150. D. decreases by $150.
Which of the following statements about demand and price elasticity of demand is TRUE?
A. As the demand curve has a positive slope, the price elasticity of demand is positive. B. As the demand curve has a positive slope, the price elasticity of demand is negative. C. As the demand curve has a negative slope, the price elasticity of demand is negative. D. As the demand curve has a negative slope, the price elasticity of demand is positive.