As the availability of a non-renewable resource decreases, we would expect
a. Rising prices and increased production
b. Rising prices and decreased production
c. Rising prices and stable production
d. Falling prices and increased production
e. Falling prices and decreased production
Ans: b. Rising prices and decreased production
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The free rider problem refers to a situation in which
A) the marginal cost of allowing additional consumers to consume a public good is zero. B) high income individuals subsidize the production of goods, such as education, that make society better off. C) people consume a pure public good without payment, even though the good may not be produced if no one chooses to pay. D) markets fail to allocate resources efficiently when benefits outweigh costs.
In the real business cycle model, fluctuations in employment are explained by ________
A) changes in the composition of household assets B) intertemporal substitution as real wages and real interest rates changes C) changes in the marginal propensity to consume D) the impact of a change in price on quantity demand and quantity supplied in goods markets
A merit goods is
a. a public good provided by government that people deem necessary and important b. a good that the market does not produce in quantities and at prices that governmentbelieves is warranted c. the highest quality of a public good that government produces d. a public good produced in the most efficient way e. a civilian public good as opposed to a national security good produced bygovernment
Which of the following groups has the highest poverty rate?
A. Age 65 or over. B. Foreign-born (not citizens). C. Hispanics. D. Female-headed households.