All else equal, when oil prices increase, oil exploration processes like horizontal drilling become more advantageous for oil companies, and this will ________ proven reserves of oil and ________ the number of years it will take to deplete the stock
of oil. A) increase; increase
B) increase; decrease
C) decrease; increase
D) decrease; decrease
A
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When bankers make loans they do not have an adverse selection problem
Indicate whether the statement is true or false
Tax revenue
What will be an ideal response?
Suppose a country has a consumption tax that is similar to a state sales tax. If its government were to eliminate the consumption tax and replace it with an income tax that includes an income tax on interest from savings, what would happen?
a. There would be no change in the interest rate or saving. b. The interest rate would decrease and saving would increase. c. The interest rate would increase and saving would decrease. d. None of the above is correct.
An exponential reserve index assumes
a. That economically recoverable reserves will increase exponentially b. That consumption will increase exponentially c. That the resource lifetime will increase exponentially d. That identified reserves will increase exponentially e. That undiscovered reserves will increase exponentially