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Economic Theory Indicates That the Economy Is Better Off Not

Question 36

Multiple Choice

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.

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