"Doomsday" predictions about the imminent depletion of one or more of our vital natural resources usually are
A) correct but are not reflected by relative price changes within our market economy.
B) overstated because of arithmetic calculation mistakes.
C) overstated because they disregard human responses to relative price changes.
D) understated because substitutes for such natural resources are also becoming less available.

Question

Quizplus · Accepted Answer

Human responses to relative price changes, such as innovation and efficiency improvements, can lead to the discovery of new resources and the development of substitutes. This means that predictions of imminent depletion often do not take into account the ability of humans to adapt and respond to scarcity through market mechanisms. As a result, such predictions are usually overstated.

"Doomsday" Predictions About the Imminent Depletion of One or More