Predictions that natural resources such as oil will be essentially used up in the next few decades
a. have been frequently made for the past century but have always proven to be false.
b. have usually been based on the quantity of proved reserves.
c. have ignored the role of price in governing the quantities demanded and supplied.
d. All of the above are correct.
D
You might also like to view...
Suppose your neighbor likes to repair motorcycles in his front yard during evenings and on weekends, and he earns $400 per week from this work
However, the sight of piles of greasy motorcycle parts and the additional noise and traffic caused by his customers reduces your value of living in this neighborhood by $300 per week. If your neighbor has a right to operate this business, what is the efficient outcome? A) He continues to operate the business. B) You can pay him to move the business to another location. C) He pays you to let him continue working on motorcycles at his home. D) There is no efficient outcome from this situation.
In one week, Mohammed can knit 5 sweaters or bake 240 cookies. The opportunity cost per cookie for Mohammed is
a. $5 b. 5 sweaters c. 48 sweaters d. 1/48 of a sweater e. 48 cookies
The National Bank Act
a. stemmed the credit expansion that banks generated by holding each other's deposits b. avoided wholesale shifts of deposits between city and country banks c. was instrumental in averting the 1907 Knickerbocker disaster d. helped to avoid financial panics and recessions e. tightened the money supply, but was by no means the banking industry's panacea
Other things constant, the price elasticity of demand for a product will tend to be smaller (more inelastic) if
a. people spend a large share of their income on the product. b. people spend an insignificant share of their income on the product. c. the population in the market area is large. d. there are many good substitutes for the product.