Under which one of the following conditions will economic theory indicate that all of a resource should be consumed in the current period?
a. Whenever the discount rate is positive
b. When the marginal net benefits in the current period are always greater than the marginal net benefits in the future
c. When substitute resources are available
d. When the marginal net benefits in the future are not discounted
e. When the users costs are positive Feedback
Answer: b. When the marginal net benefits in the current period are always greater than the marginal net benefits in the future
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What will be the likely effect of an increase in the demand for American goods in the markets of Mexico on the demand for dollars and the exchange rate between dollars and pesos?
What will be an ideal response?
According to the textbook, when claim they are using the cost-plus-markup formula, they
A) usually choose a 10 percent markup B) usually choose a 50 percent markup C) usually choose a 100 percent markup D) might not be correctly describing their price-setting behavior.