If the price of a depleting resource does not rise as anticipated, it may be because
A. the government prohibited the methods to extract the resource.
B. new methods of mining or refining were developed.
C. a price floor was passed by law.
D. firms that distribute the resource cartelized.
Answer: B
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A change in technology or the relative prices of the inputs used in a production process would cause a manager's choice of inputs to use in the production process to change as well
Indicate whether the statement is true or false
If the public decides to hold less currency and more deposits in banks, bank reserves
a. decrease and the money supply eventually decreases. b. decrease but the money supply does not change. c. increase and the money supply eventually increases. d. increase but the money supply does not change.
The temptation of imperfectly-monitored workers to shirk their responsibilities is
a. an example of the moral hazard problem. b. an example of the adverse selection problem. c. an example of screening. d. an example of signaling.
Ranchers can raise either cattle or sheep on their land. Which of the following would cause the supply of sheep to increase?
A) an increase in the price of sheep B) a decrease in the price of cattle C) an increase in the demand for cattle D) an increase in the price of sheep feed