While the price of a resource may increase sharply during some periods, the structure of ____ accompanying the price increase makes depletion highly unlikely and provides the seeds for future reversal.
A) government programs
B) foreign competition
C) incentives
D) taxation

Question

Quizplus · Accepted Answer

The structure of incentives can provide a framework for sustainable use of a resource, even if the price increases. This can help discourage wasteful consumption and promote conservation measures, ultimately preventing depletion and allowing for future recovery. Option A, government programs, may or may not be effective in promoting sustainability depending on their design and implementation. Option B, foreign competition, is not directly related to the sustainability of a resource. Option D, taxation, may help discourage consumption to some extent, but may not incentivize sustainable practices.

While the Price of a Resource May Increase Sharply During