Asked by
Vikas Kashver
on Dec 12, 2024
Verified
The classic resource study of Barnett and Morse found that
A) resource costs have been rising at such a rate that, within fifty years, the prices of most natural resources will be exorbitant.
B) the current proved reserves of most minerals are becoming perilously low.
C) resource prices declined between 1870 and 1920, but since 1920 the relative price of natural resources has been increasing at an annual rate of approximately 3.5 percent.
D) technology and developing substitutes outran our use of scarce natural resources during the last century, so that relative resource prices have declined.
Proved Reserves
Quantities of natural resources, like oil or gas, that are confirmed by analysis to be recoverable under current technological and economic conditions.
Natural Resources
Assets occurring in nature, such as minerals, forests, water, and fertile land, that can be used for economic gain.
Relative Price
The price of a good or service in comparison to the price of other goods and services.
- Understand the impact of technology and substitutes on the relative prices of natural resources.
Verified Answer
RS
Learning Objectives
- Understand the impact of technology and substitutes on the relative prices of natural resources.