How do rising prices slow resource depletion?
What will be an ideal response?
Three ways: reduce consumption (conservation), reduce use of the input into production, and encourage innovation. Higher oil prices led to better insulated homes, thus reducing consumption. Firms substantially reduced the energy intensity of their factories. Higher energy prices make solar and other energy alternatives more feasible.
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If interest rates and output rises, then
a. government spending may have fallen. b. the money supply may have risen. c. taxes may have risen. d. expectations may have risen. e. none of the above.
Downward sloping long-run supply curves occur in markets
A) with learning-by-doing. B) with increasing returns to scale. C) with constant returns to scale. D) Either A or B
Refer to the production function. The average product at 5 units equals ________ units
Fill in the blank(s) with correct word
To economists, the term utility refers to the
a. usefulness of a good in relation to its scarcity b. necessity of a good c. ratio of marginal utility of a good to its price d. quantity of goods a consumer has in reserve, meaning goods unconsumed e. benefit or satisfaction a consumer receives consuming a good