The spread between price and marginal cost of an exhaustible resource must grow by the rate of interest so that
A) resource owners earn a profit.
B) resource owners are willing to sell some of the resource in the future.
C) the price of the resource remains constant in real terms.
D) the marginal cost of extracting the resource declines.
B
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The main tool that the Federal Reserve uses to conduct monetary policy is
A) discount policy. B) open market operations. C) acting as the lender of last resort. D) check clearing. E) setting reserve requirements.
Which of the following has resulted from the rise in the participation of women in the labor force?
a. More men lost jobs in the long run b. Youth crime increased significantly c. Households produced less for themselves and demanded more from the market d. More families moved to rural areas
The substitution bias in the CPI refers to the failure of statisticians to:
A. take into account new products purchased by consumers. B. take into account improvements in goods and services. C. allow for the possibility that consumers switch from products whose prices are rising. D. allow for the possibility that consumers switch stores at which they shop.
As long as a public sector activity will generate benefits regardless of the costs, the activity should definitely be undertaken.
Answer the following statement true (T) or false (F)