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What Do Most Economists Think Is the Socially Optimum Extraction

Question 92

Multiple Choice

What do most economists think is the socially optimum extraction rate of a natural resource such as oil?


A) One that equals the MRP of the resource.
B) A rate that ensures that the price of oil increases at the same rate as the interest rate.
C) One that is less than the rate of discovery of new sources.
D) One that is less than 2 percent of known reserves so as to guarantee at least 50 years' supply at all times.

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