Suppose an economist uses an econometric model to estimate the demand for peanut butter in the United States. This modeling is an example of

Which one of the following statements is false if we increase the discount rate used to allocate a resource across two time periods?

a. The resource will tend to be used up quicker b. The price of the resource will tend to rise faster c. Current consumption of the resource will increase d. The appropriate resource depletion tax will increase e. Future supplies of the resource will decrease

One reason why it is very difficult to write optimal military procurement contracts is because _____

a. there are numerous possible producers b. the military purchases many goods c. new technology often has to be developed d. there are many possible consumers of the product