According to Economic Theory, Under Perfect Competition, the Price of a Depletable

question 212

Multiple Choice

According to economic theory, under perfect competition, the price of a depletable resource whose costs of transportation and extraction are negligible

• A)is a poor indicator of scarcity.
• B)must rise at the rate of interest.
• C)will be unable to change to avert running out of it.
• D)is too erratic to allow markets to respond to shortages.

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Definitions:

Flooding

A psychological treatment method that exposes the patient to their fear or trauma in a safe and controlled environment to help overcome anxiety.

Rational-emotive

A cognitive-behavioral approach that identifies irrational beliefs, challenges them, and encourages the development of more rational thought patterns to facilitate emotional well-being.

Obsessive-compulsive Disorder

A chronic disorder where a person has uncontrollable, reoccurring thoughts (obsessions) and behaviors (compulsions) that he or she feels the urge to repeat over and over.

Cognitive-behavioral Theorists

Scholars who study and develop therapies based on the idea that cognitive processes influence behavior and emotions, and that altering these processes can lead to change.