Asked by
Mackenzie Brown
on Dec 12, 2024
Verified
Economic theory indicates that the economy is better off not to produce proved reserves of a mineral "too quickly." By this, the theory means that
A) people prefer some bad luck in exploration efforts, rather than too much good luck in finding the resources.
B) society does not want the resource to be too abundantly available since this would reduce its price and GDP.
C) other nations' resources should be used first, even if doing so is more costly.
D) using additional resources for exploration is a harmful decision if the present discounted value of the benefits is smaller than the cost.
Proved Reserves
The quantity of natural resources, such as oil or gas, that can be technically and economically viable to extract under current conditions.
Economic Theory
A set of principles and frameworks that seek to explain how economies work, covering areas like market dynamics, production, and distribution.
- Understand the impact of resource prices on economic decision-making and the economy overall.
Verified Answer
RF
Learning Objectives
- Understand the impact of resource prices on economic decision-making and the economy overall.