Which of the following would cause the present optimal extraction level of a nonrenewable resource to fall?
A. A reduction in extraction costs.
B. A reduction in user costs.
C. A reduction in total costs.
D. A reduction in the price of the resource.
Answer: D
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According to this Application, international statistics show that the developing countries are ________ and the developed countries are ________
A) creditors; creditors B) creditors; debtors C) debtors; debtors D) debtors; creditors
In the specific factors model, a 0% increase in the price of food accompanied by a 5% increase in the price of cloth will cause wages to ________, the production of cloth to ________, and the production of food to ________
A) increase by less then 5%; increase; decrease B) increase by 5%; remain unchanged; remain unchanged C) increase by more then 5%; increase; remain unchanged D) remain constant; increase; increase E) remain constant; decrease; decrease
Marginal utility will generally decrease when:
a. more of a particular good is consumed. b. less of a particular good is consumed. c. average utility is the least. d. per capita utility is the least. e. the TU curve's slope is positive rather than negative.
A system of economic organization in which the ownership and control of productive capital assets rests with the state and resources are allocated through central planning and political decision making is called: a. a market economy
b. a command economy. c. a corporate economy. d. capitalism.