Arguing That Economic Growth Will Eventually Stop Because We Will

question 27

Multiple Choice

Arguing that economic growth will eventually stop because we will run out of natural resources:

• A)must be correct because scarcity exists.
• B)will only be correct if growth takes the form of newer, more efficient goods and services.
• C)ignores the power of markets to recognize shortages and induce changes in behavior.
• D)is supported today by the fact that richer countries have fewer natural resources.

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Definitions:

Retained Earnings

Profit accumulated over time by a company, after dividend payments to shareholders, which is reinvested in its business.

Balance Sheet

A financial statement that summarizes a company's assets, liabilities, and shareholders' equity at a specific point in time.

Assets

Resources owned by a person or company that have economic value or can provide future benefits, such as cash, property, or investments.

Equipment

Tools, machinery, or other necessary items for a particular purpose or activity.