What has happened to resource prices in the twentieth century and what do they reveal about resource scarcity?
Figure 17-3 from the textbook provides data on lead, zinc, and copper prices. These data suggest that these resources are not generally becoming more scarce in this century. Baumol and Blinder suggest that this price pattern for resources stems from three things: (1) unexpected discoveries of reserves whose existence was not previously suspected; (2) the invention of new methods of mining or refining, which significantly reduced extraction costs; and (3) price controls, which held some prices down or decreased them below what the market would have paid.
You might also like to view...
Refer to the above table. What does total product equal when 4 units of labor are used?
A) 1328 B) 332 C) 320 D) 960.
A firm sets its price at $10.00 per unit. It has an average variable cost of $8.00 and an average fixed cost of $4.00 per unit. In the short run, this firm is a. incurring a loss of $2.00 per unit and should shut down
b. unable to cover all of its fixed cost and hence should shut down. c. incurring a profit. d. incurring a loss per unit of $2.00, but since it can still cover its variable costs, should continue to operate
The distinguished economist Kenneth Bounding stated: “Theories without facts may be barren, but facts without theories are meaningless.” Explain what he meant
Please provide the best answer for the statement.
A budget line shows the:
A. alternative combinations of two goods that a consumer can purchase with a given money income. B. alternative combinations of two goods that will yield the same level of total utility to a consumer. C. quantities of a particular good that a consumer will buy at various prices. D. ratio of money income to product price.