Rising prices for a natural resource stimulate
A. the development of complements for the resource.
B. the development of substitutes for the resource.
C. the development of externalities from the resource.
D. the tendency to consume before the resource expires.
Answer: B
Economics
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Economic growth can be defined as a percentage increase in
A) per capita real GDP. B) nominal GDP. C) consumption by households. D) real GDP.
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Fiscal policy is government action to influence aggregate demand and in turn to influence the level of real GDP and the price level, through:
a. expanding and contracting the money supply. b. regulation of net exports. c. changes in government spending and/or tax revenues. d. encouraging businesses to invest.
Economics