Multiple Choice
According to economic theory, under perfect competition, the price of a depletable resource
A) becomes an inaccurate signal of scarcity.
B) may fall as firms will develop substitutes.
C) will be too volatile to let markets adjust.
D) will increase as firms develop new innovations to extract the resource.
Correct Answer:
Verified
Correct Answer:
Verified
Q160: Which of the following would not lead
Q161: Dwindling resources encourage the development of substitute
Q162: Which of the following observations is true?<br>A)Environmental
Q163: Air quality in most U.S.cities has _
Q164: In the last three decades, air quality
Q166: Economists use a resource's price as an
Q167: A "backstop resource" is a close substitute
Q168: The increase in world oil prices during
Q169: When a resource is being depleted and
Q170: Briefly and concisely define the following terms.