According to the Hotelling Principle, the Price of a Nonrenewable

question 47

Multiple Choice

According to the Hotelling Principle, the price of a nonrenewable resource is expected to

• A) fall at a rate equal to the interest rate.
• B) rise at a rate lower than the interest rate.
• C) rise at a rate higher than the interest rate.
• D) rise at a rate equal to the interest rate.

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Definitions:

Appeal to Higher Loyalties

A justification for behavior that is based on the claim that the action was in service of a higher principle or greater good, sometimes used to rationalize unethical acts.

Expense Report

A detailed report produced by employees to document and request reimbursement for expenditures made on behalf of the company.

Corporate Social Responsibility

The commitment of a business to contribute to sustainable economic development by working with employees, their families, the local community, and society to improve quality of life in a way that is beneficial for both the business and development.

Legal Constraints

Restrictions imposed by laws and regulations that dictate how a business can operate.