The Cost of Not Being Able to Extract and Sell

question 314

Multiple Choice

The cost of not being able to extract and sell a nonrenewable resource in the future (because it is being extracted in the present) is known by natural resource economists as the

• A)extraction cost.
• B)future cost.
• C)conservation cost.
• D)user cost.

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Definitions:

Absolute Advantage

Absolute advantage refers to an individual's, firm's, or country's ability to produce more of a good or service than competitors, using the same amount of resources.

Technology

The application of scientific knowledge for practical purposes, especially in industry.

Increasing Returns

A situation in economics where an increase in the scale of production leads to a more than proportionate increase in output, often due to efficiencies gained.

Trade Pattern

The general flow of import and export transactions between countries or regions.