Session 5: Economics: Market Structure and Macroeconomic Analysis
Reading 21: Markets for Factors of Production
LOS g: Differentiate between renewable and nonrenewable natural resources and describe the supply curve for each.
Which statement about renewable and non-renewable resources is most accurate?
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A) |
The supply curve for a non-renewable resource is perfectly elastic and the price is determined by demand for it. | |
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B) |
Land is considered a renewable resource. | |
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C) |
The known stock of a non-renewable resource must decrease as the resource is used. | |
Land is considered a renewable resource because using it in the present does not prevent its use in the future. The known stock of a non-renewable resource is fixed in the short term, but can increase in the long term as technology makes more of the resource accessible. The supply curve for a non-renewable resource is perfectly elastic at that price, and the quantity supplied is determined by demand. | 
发表于 2011-3-9 11:20
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