The user cost of extracting a nonrenewable resource is:
A. inversely related to how much of the resource remains.
B. directly related to how much of the resource remains.
C. unrelated to how much of the resource remains.
D. inversely related to the expected future price of the resource.
Answer: A
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Which area represents the net gain to society? Should the reduction in output from QC to QE take place? Why or why not?
Use the following graph of the refined petroleum market to answer the questions below.
Physical capital is the:
A. physical labor of workers. B. financial resources available for investment. C. talents, training, and education of workers. D. factories and machinery used to produce other goods and services.
Which of the following is likely to be nonexcludable but rival?
A) walking along a crowded hiking trail B) watching cable TV C) viewing flowers along the highway D) listening to a local radio station
If the marginal social benefit of consuming a good or a service exceeds the marginal private benefit
A) a positive externality exists. B) a negative externality exists. C) the sum of consumer surplus and producer surplus is maximized. D) the market achieves economic efficiency.