The Hotelling Principle Is the Idea That the Price of a ________

question 81

Multiple Choice

The Hotelling Principle is the idea that the price of a ________ is expected to rise at a rate equal to the ________.

• A)nonrenewable natural resource;inflation rate
• B)unit of capital;interest rate
• C)nonrenewable natural resource;interest rate
• D)unit of capital;inflation rate
• E)nonrenewable natural resource;percentage increase in demand

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Definitions:

Heuristics

Mental shortcuts that ease the cognitive load of making decisions or solving problems.

Algorithms

Step-by-step problem-solving procedures or formulas that guarantee a solution to a problem if correctly applied.

Primary Mental Abilities

According to Thurstone, the basic abilities that make up intelligence examples include word fluency and numerical ability.

Louis Thurstone

An influential American psychologist known for his contributions to psychometrics, including factor analysis and the development of psychological scales.