"Market prices give no reason to believe that natural resources are a limit to economic growth.". Explain this statement
If the world were running out of natural resources, then the prices of those resources would be rising over time. In fact, over long periods of time, the prices of most natural resources, adjusted for inflation, are stable or falling.
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If more people enter medical school, we can expect:
a. the demand for doctors to increase. b. the supply of doctors to increase. c. the demand for doctors to decrease. d. the supply of doctors to decrease. e. no effect on the supply or demand of doctors?just a movement along the curves.
The goal of the consumer price index is to gauge how much incomes must rise to maintain a constant standard of living
a. True b. False Indicate whether the statement is true or false
The patent system is used to ______.
a. help innovative firms prosper and promote investment in R & D. b. prevent companies who make inventions from becoming too profitable c. decrease investment in R & D and slow the unfettered growth of technology d. combat overproduction and reduce the damage of negative externalities
Ignoring the issue of whether the CPI overstates the cost of living generally, the fact that the poverty line is adjusted using the overall CPI to adjust for overall inflation means that if the costs of necessities rises
A. faster than the overall CPI, the poverty line is understated. B. faster than the overall CPI, the poverty line is overstated. C. slower than the overall CPI, the poverty rate is overstated. D. slower than the overall CPI, the poverty rate is understated.