The relative prices of the products that use natural resources intensively will decrease over time with the decrease in the availability of the natural resources.

Question

Quizplus · Accepted Answer

The statement is incorrect because as the availability of natural resources decreases, the relative prices of products that use natural resources intensively will increase, not decrease. This is because as the natural resources become scarcer, their value increases and the cost of production of such products increases.

The Relative Prices of the Products That Use Natural Resources