Economic theory posits that a resource that is finite and being depleted will rise in price continuously and demand will be reduced. In fact, a recent study, graphing the price behavior of lead, zinc, and copper found that until about 2007,
A. prices rose steadily, as predicted.
B. prices dropped precipitously.
C. prices remained remarkably stable.
D. prices were up and down with no discernible pattern.
Answer: C
You might also like to view...
Corporations must always pay dividends to their shareholders.
Answer the following statement true (T) or false (F)
If a firm can borrow or lend at a 6 percent annual interest rate, it will
a. buy more capital if it has the funds on hand than if it has to borrow them b. ignore the market rate of interest when making capital investment decisions c. buy less capital if it has the funds on hand than if it has to borrow them d. ignore the market rate of interest when making saving decisions e. buy the same amount of capital whether it has the funds on hand or has to borrow them
A decrease in the price of a nonlabor input such as electricity will cause
A) a movement down the SRAS curve. B) a movement up the SRAS curve. C) a leftward shift in the SRAS curve. D) a rightward shift in the SRAS curve. E) no change regarding the SRAS curve.
2 potential problems with macro equilibrium
What will be an ideal response?