According to the Hotelling Principle, the price of an nonrenewable resource
A) falls slowly over time.
B) falls at a rate equal to the interest rate.
C) rises at a rate equal to the interest rate.
D) remains constant over time.
C
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Saving is important for economic growth because
A) a higher saving rate will decrease the standard of living in the future. B) a higher saving rate increases investment spending. C) more saving increases consumption immediately. D) a higher saving rate reduces investment spending.
In the above figure, the equilibrium level of labor is
A) 100 billion hours. B) 150 billion hours. C) 200 billion hours. D) none of the above
An economist observes two consumers in a supermarket. One of the consumers buys a case of Coca-Cola and the other buys a case of Pepsi-Cola. Both colas sell for the same price and the ages and incomes of the consumers are also the same
Based on this information, how would the economist explain the consumers' choices? A) Both consumers should have purchased less than a case because they would be able to buy more later. B) Both consumers should have considered buying other colas that had lower prices. C) Apparently, the consumers had different tastes. D) One of the consumers made the wrong choice, but it is impossible to say which one.
The process of invention is the act of
A. introducing a new product into the market. B. applying a process in a new area of the market. C. discovering a new process or product. D. adopting an innovation to a profitable use.