Explain why it is highly unlikely that the world's oil reserves will be depleted within the next 40 years
What will be an ideal response?
As resources become more scarce, the price tends to increase. With oil, this price increase will lead to a decrease in consumption as consumers increase conservation, will make costly sources of oil more economical to extract, will encourage exploration of oil, and will encourage the development of oil substitutes. All of these will increase the number of years until the oil reserves will be depleted.
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Refer to Figure 9.8. In order to eliminate international trade in sugar altogether, this country would have to impose a tariff of
A) $25. B) $50. C) $75. D) $150. E) $175.
"Real business cycle" theory argues that business cycles do not, in fact, exist
Indicate whether the statement is true or false
When making a purchase, it is least costly to
a. pay cash. b. put it on a credit card and pay off the balance plus interest in one year. c. put it on a credit card and pay off the balance at the end of the month before interest accrues. d. it doesn't matter because all three have the same present value.
All real-world Lorenz curves are below the diagonal line because income is always distributed unequally in the real world.
Answer the following statement true (T) or false (F)