The Hartwick sustainability rule states that maintaining constant real consumption of
goods and services is possible even in the presence of exhaustible resources.

Question

The Hartwick sustainability rule states that maintaining constant real consumption of
 goods and services is possible even in the presence of exhaustible resources.

Quizplus · Accepted Answer

The Hartwick sustainability rule suggests that constant real consumption can be maintained despite exhaustible resources if the revenues generated from the depletion of these resources are invested in other forms of capital, such as human or natural capital. This ensures that overall capital remains constant, allowing for sustainable consumption in the long run.

The Hartwick Sustainability Rule States That Maintaining Constant Real Consumption