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:

Security

A financial instrument representing an ownership position in a publicly-traded corporation (stock), a creditor relationship with a government or a corporation (bond), or rights to ownership as represented by an option.

Intrastate Exemption

Refers to exceptions within state regulations that allow certain activities to occur without needing to comply with broader federal laws or regulations.

SEC

The Securities and Exchange Commission, a U.S. federal agency responsible for enforcing federal securities laws, regulating the securities industry, and overseeing the nation's stock and options exchanges.

1934 Act

The Securities Exchange Act of 1934, which governs the trading of securities, such as stocks and bonds, in the U.S.