The user cost of extracting a nonrenewable resource is:
A. the sum of the dollar expenditures incurred to extract the resource.
B. the cost of not being able to extract it in the future if it is extracted and sold in the present.
C. the selling price of the resource to the companies using it to produce goods and services.
D. directly proportional to how much of the nonrenewable resource remains.
Answer: B
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As the stock of a depletable resource falls, its user cost
A) rises. B) falls. C) is unchanged, but its price rises. D) is unchanged, but the extraction cost rises. E) is unchanged, but its true cost rises.
The Federal Reserve may increase the money supply by: a. selling a bond to a member bank
b. selling a bond to a securities dealer. c. lending reserves to banks. d. increasing required reserve ratios. e. increasing the discount rate.