Compare the real cost of commodity resources today (circa 2009) with their cost in the 1845–1850 period. What explains the change?
What will be an ideal response?
The real cost (inflation adjusted) of buying resource commodities in 2011 was about 50% lower than it was in the initial 1845–1850 period. The long-run decline in the prices of these commodities indicates that the supply of such resources has grown faster than the demand for them that arises because of population increase and rising consumption per person.
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If two interdependent economies work independently pursuing the best interests of their own economies
A) both countries can end up worse than they planned because of international externalities. B) they will make other economies more vulnerable to international externalities. C) they will have to sacrifice their monetary autonomy to achieve their goals. D) both countries can end up worse than they planned because of the liquidity effect.
If John's marginal benefit derived from the consumption of another candy bar is greater than the price of the candy bar:
a. John will not purchase any more candy bars. b. John will increase his total satisfaction by purchasing the candy bar. c. the opportunity cost of the candy bar is lower than the price. d. John will decrease his total utility if he purchases the candy bar.
The unemployment rate rises any time there is an increase in the number of unemployed
Indicate whether the statement is true or false
Prices allocate a market economy's scarce resources
a. True b. False Indicate whether the statement is true or false