A Leading Environmental Group Recently Published a Report Contending That

question 91

Multiple Choice

A leading environmental group recently published a report contending that humans are running a "resource deficit" because we are using natural resources faster than they can be regenerated.The group claims that this means that economic growth will eventually stop,and will even be reversed.An economist would

• A)agree with the report,and would point to rising natural resource prices as evidence.
• B)agree with the report,but wouldn't think it was important because growth will not slow down for several centuries.
• C)disagree with the report,in part because it ignores the mitigating effects of technological change.
• D)disagree with the report because labor and capital are the primary determinants of growth,and since they are plentiful,growth will not slow down.

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Definitions:

Numerical Dividing Line

A threshold or boundary defined by a specific numerical value or range.

Many

A term indicating a large number of items, people, or entities in a given context.

Crude Quantity Theory

A basic hypothesis regarding the relationship between the quantity of money in an economy and its level of prices.

Constant

A value that remains unchanged throughout the scope of an equation, analysis, or experiment.