How the Price of a Depletable Resource Changes Over Time

question 76

Multiple Choice

How the price of a depletable resource changes over time depends on

• A)how the technology of resource extraction changes.
• B)the interest rate.
• C)how the technologies of production change in firms that use the resource.
• D)All of the above are correct.

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Definitions:

Defined Contribution Plans

Pension plans in which the employer is committed to making contributions according to a fixed formula.

Defined Contribution Plan

A retirement plan where an employer, employee, or both make contributions on a regular basis, with future benefits dependent on investment performance.

Risk-free Return

The theoretical return on an investment with no risk of financial loss, typically associated with government bonds.

Standard Deviation

A measure of the amount of variation or dispersion of a set of values, used in finance to gauge the return volatility of an investment.