Answer the following statements true (T) or false (F)
1. In the extraction of a nonrenewable resource such as coal, the mining firm faces "user costs"
which refer to the cost of digging out the coal, running the mine, and transporting the coal.
2. If resource extraction companies can benefit from both present and future extraction, they will
limit current extraction to only those units which are more profitable to extract in the present
rather than in the future.
3. Definition of property rights is a key component to proper conservation of resources.
4. In the case of conflict diamonds, the strict enforcement of property rights has lead to too fast of
a rate of extraction.
5. The price of harvesting a renewable resource does not affect when or how much of a
renewable resource will be harvested.
1. FALSE
2. TRUE
3. TRUE
4. FALSE
5. FALSE
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Many economists are critical of proposals to pass comparable worth legislation. Which of the following is the best explanation for this criticism?
A) Proposals for comparable worth legislation assume that wages for low-paying women's jobs should include compensating differentials. Economists believe that compensating differentials should be part of the wages for all jobs held by women. B) Proposals for comparable worth legislation call for increases in the wages of jobs held predominantly by women. Economists believe that this legislation should be used to increase the wages of all workers. C) Many economists believe that allowing markets to determine wages, rather than the rules required by comparable worth legislation, results in more efficient outcomes. D) Comparable worth legislation will only lead to efficient market outcomes if women in low-paying jobs suffer from cognitive dissonance.
If the interest rate is 8 percent, then what is the present value of $5,000 to be received in ten years?