Mining of "conflict diamonds" tends to:
A. be more profitable as warring factions are willing to pay more for the diamonds.
B. occur at a slower pace than would maximize the long-term stream of profits because war
increases extraction costs.
C. occur at a pace slower than would maximize the long-term stream of profits since the war
disrupts production.
D. occur at a pace faster than would maximize the long-term stream of profits since warring
factions extract diamonds as quickly as possible due to fears that they may soon lose
control of the diamond mines.
Answer: D
You might also like to view...
Suppose there are only 2 nations, Atlantis and Pacifica, and only two goods, surfboards and kayaks. If Atlantis produces only surfboards, it can make 50 per day. If Atlantis produces only kayaks, it can make 75 per day
If Pacifica produces only surfboards, it can make 75 per day. If Pacifica produces only kayaks, it can make 75 per day. After trade begins, ________ will specialize in the production of surfboards and ________ will specialize in the production of kayaks. A) Atlantis; Pacifica B) Pacifica; Atlantis C) Atlantis; Atlantis D) Pacifica; Pacifica
Why is it likely that a market economy will perform better than a command economy?
What will be an ideal response?
Suppose the production of a good results in negative externalities. If all costs are taken into account, then
A. output will be at a lower level than if all costs are not taken into account. B. output will be at a lower level than the socially optimal level. C. the marginal private cost curve will lie above and to the left of the marginal social cost curve. D. a and b E. a, b, and c
Keynes believed that the instability in income was caused by variability in
a. investment. b. taxes. c. consumption and savings. d. government spending.