Even if demand for a resource grows over time, ever-rising prices of the resource that result from its growing scarcity still discourage consumption.
Answer the following statement true (T) or false (F)
True
You might also like to view...
Assume the interest rate on a current one-year bond is 3%, and the expected interest rate on the one-year bond one year from now is 6%. If the term premium on a two-year bond is 0.5%, then the interest rate on the two-year bond will be
A) 4%. B) 4.5%. C) 5%. D) 6.5%.
Using Figure 1 above, if the aggregate demand curve shifts from AD1 to AD2 the result in the short run would be:
A. P1 and Y2. B. P3 and Y1. C. P2 and Y2. D. P2 and Y3.
Suppose that both nominal GDP and prices double. We can conclude that real output:
A. doubled. B. fell. C. more than doubled. D. remained constant.
Related to the Economics in Practice on page 357: Insurance companies are interested in being legally allowed to obtain the results of genetic testing before deciding on issuing insurance policies to potential buyers, which would lessen the problem of ________ in the health insurance market.
A. risk-loving B. market signaling C. adverse selection D. moral hazard