The user cost of extracting a nonrenewable resource is:
A. inversely related to how much of the resource remains.
B. directly related to how much of the resource remains.
C. unrelated to how much of the resource remains.
D. inversely related to the expected future price of the resource.
Answer: A
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a. a change in business inventory b. a consumption expenditure c. an investment expenditure d. a service good e. a household expenditure
What is the principal reason that economists give for the existence of deflationary and inflationary gaps?
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