1.Which of the following best describes the elasticities of supply for renewable and non-renewable resources?

A)                 Elastic                            Perfectly elastic

B)             Perfectly inelastic               Perfectly elastic

C)                 Inelastic                          Perfectly inelastic

D)              Perfectly elastic                 Perfectly inelastic

2.Which statement about renewable and non-renewable resources is most accurate?

A)  The price of a renewable resource is the present value of its expected next-period price.

B)  Land is considered a renewable resource.

C)  The known stock of a non-renewable resource must decrease as the resource is used.

D)  The supply curve for a non-renewable resource is perfectly elastic and the price is determined by demand for it.

答案和详解如下：

1.Which of the following best describes the elasticities of supply for renewable and non-renewable resources?

Renewable resource

Non-renewable resource

A)                                        Elastic   Perfectly elastic

B)                                        Perfectly inelastic      Perfectly elastic

C)                                        Inelastic       Perfectly inelastic

D)                                        Perfectly elastic  Perfectly inelastic

The correct answer was B)

The supply (flow) of a renewable resource is fixed at any point in time. Therefore the supply is independent of price, or perfectly inelastic. Supply (stock) of a non-renewable resource is perfectly elastic, as the resource is supplied from its known stock at a price equal to the present value of its expected price in the next period.

2.Which statement about renewable and non-renewable resources is most accurate?

A)  The price of a renewable resource is the present value of its expected next-period price.

B)  Land is considered a renewable resource.

C)  The known stock of a non-renewable resource must decrease as the resource is used.

D)  The supply curve for a non-renewable resource is perfectly elastic and the price is determined by demand for it.

The correct answer was B)

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 price of a non-renewable resource is the present value of its expected next-period price. The supply curve for a non-renewable resource is perfectly elastic at that price, and the quantity supplied is determined by demand.