Econ Micro (book Only)
6th Edition
ISBN: 9781337408066
Author: William A. McEachern
Publisher: Cengage Learning
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Question
Chapter 17, Problem 1P
To determine
The appropriate words to be filled in the blanks to complete the given sentences
Introduction:
The factors either economic or productive or both required for completion of an activity or for undertaking an enterprise or for achieving favorable outcome are known as resources. In economics, resources are generally classified as natural resource, human resources and capital resources.
Expert Solution & Answer
Explanation of Solution
a. Resources for which periodic use can be continued indefinitely are known as renewable resources.
The resources that are capable of replenishing themselves by natural processes to overcome depletion caused by consumption and usage are known as renewable resources.
b. Resources that are available only in a fixed amount are exhaustible resources.
The resources which are limited in quantity and do not have the ability to replenish themselves and those resources that get exhausted by consumption and usage are known as exhaustible resources.
c. The possibility that an open-access resource is used until the net marginal value of additional use equals zero is known as the common pool problem.
The measures that need to be implemented for the use of common pool resources till the marginal
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Students have asked these similar questions
D Question 7 Noise generated by an airport best illustrates.
market power.
overproduction of private goods.
an externality.
an inequity.
A situation in which the Marginal Social Cost is greater than the Marginal Private Cost is
a. Positive Consumption Externality
○ b. Positive Production Externality
c. Negative Production Externality
○ d. Negative Consumption Externality
Clear my choice
When externalities cause markets to be inefficient
(x) government action is sometimes needed to solve the problem.
(y) private solutions can be developed to solve the problem.
(z) there is a way to eliminate the problem of externalities in the market if producers are provided with the appropriate incentives to internalize the externality.
Select one or more:
a. (x), (y) and (z)
b. (x) and (y) only
c. (x) and (z) only
d. (y) and (z) only
e. (z) only
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