According to the Hotelling Principle, the price of a nonrenewable resource is expected to
A) rise at a rate higher than the interest rate.
B) rise at a rate lower than the interest rate.
C) rise at a rate equal to the interest rate.
D) fall at a rate equal to the interest rate.
C
You might also like to view...
Prospect theory implies that consumers are motivated by
a. The actual price level b. The distance of the price from the reference price c. All of the above d. None of the above
Suppose there is no change in total revenue when the price changes. The demand curve for this good is:
a. perfectly elastic. b. perfectly inelastic. c. elastic. d. inelastic. e. unitary elastic.
Frictional unemployment refers to:
a. unemployment related to the ups and downs of the business cycle. b. workers who are between jobs. c. people who spend relatively long periods out of work. d. people who are out of work and have no job skills.
Refer to the following game.Firm AFirm B??Low PriceHigh Price?Low Price(10,9)(15,8)?High Price(-10,7)(11,11)What are the secure strategies for firm A and firm B respectively?
A. (high price, high price) B. (low price, low price) C. (low price, high price) D. (high price, low price)