Economic Theory Suggests That If Natural Resources Can Be Held

question 218

Multiple Choice

Economic theory suggests that if natural resources can be held as private property, then

• A) conservation will be nonexistent.
• B) owners will have an incentive not to abuse them.
• C) natural resources will be sold off for immediate use.
• D) people will simply hold them and refuse to make them available.

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Definitions:

Long-run Equilibrium

A state in which all factors of production can be adjusted, allowing for the optimal allocation of resources in a market or economy over time.

Identical Cost Curves

These are cost curves for different firms that have the same shape and attributes, indicating that the firms have the same cost structure at various levels of output.

Industry Produce

The total output of goods and services produced by all the firms operating in a particular industry.

Short-run Supply Curve

A graphical representation showing the quantity of a good that producers are willing to sell at different prices in the short run, where at least one input is fixed.