How Are the Economic Forces That Govern Renewable Resources Different

question 195

Multiple Choice

How are the economic forces that govern renewable resources different than those that govern non-renewable resources?

• A) Non-renewable resources must be protected by government policies to prevent depletion.
• B) Once non-renewable resources are used up they are gone forever.
• C) Both renewable and non-renewable resources have become scarcer over time so the economic forces at work are the same.
• D) Renewable resources are not subject to the laws of economics since the scarcity condition no longer holds.

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Definitions:

Profit Maximization

The technique used by firms to pinpoint the price and amount of production that results in the largest profit.

Speeding Ticket

A notice issued by law enforcement to a driver who has violated traffic speed regulations, typically requiring payment of a fine.

Revenue Per Mile

A financial metric used primarily in transportation and logistics to measure the amount of income generated for every mile of transportation.

Profit Maximization

The process or strategy of adjusting production and operation inputs to achieve the highest possible profit.