Natural Resources

question 4

Multiple Choice

Natural resources:

• A)are still the most important factor in determining the productivity of human or physical capital for all countries.
• B)are the only factor that consistently shows a positive effect on productivity for wealthy countries.
• C)are a less significant source of productivity growth in most countries today than in earlier times.
• D)can be used to explain the differences in productivity growth among countries.

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Definitions:

Cost Curves

Graphs that show the relationship between the cost of producing a good or service and the output level.

Short-Run Supply Curve

A graphical representation showing the quantity of goods a firm is willing and able to supply at different prices in the short term.

MC Curve

Short for Marginal Cost Curve, it graphs the cost to produce one additional unit of a good or service against the quantity produced.

Purely Competitive

Refers to a market structure characterized by a large number of small firms, homogeneous products, and free entry and exit, leading to price-taking behavior.