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.
Answer: C
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Suppose the price of a DVD is $15 per unit. At that price, consumers wish to purchase 6,000 units weekly and producers wish to sell 4,000 units weekly. In this situation,
a. unsatisfied consumers will bid up the market price. b. the market price will fall because producers are unsatisfied. c. the price will rise and the demand will fall to bring the market to equilibrium. d. supply will increase by 2,000 units in order to satisfy consumers.
Assuming that the United States is the domestic economy, ________ are goods and services produced by ________ and purchased by ________
A) exports; foreign countries; the United States B) exports; the United States; the United States C) imports; foreign countries; the United States D) imports; foreign countries; foreign countries
At the time of the Civil War the most important crop in the South was _________.
Fill in the blank(s) with the appropriate word(s).
A bottle of wine can be produced in France with two labor hours, and in the United States with four labor hours. A pound of beef can be produced in France with one labor hour, and in the United States with ½ labor hours. Given this context, which of the following is true?
A. The United States has both a comparative and absolute advantage in the production of beef. B. France has a comparative advantage in the production of beef. C. The United States has an absolute but not a comparative advantage in the production of beef. D. France has an absolute advantage in the production of beef.