Non-renewable resource allocation Ch 6 Flashcards
1
Q
Nonrenewable resources
A
do not regenerate through ecological processes, at least on a human time scale, such as oil, coal, and mineral ores.
2
Q
Static equilibrium
A
the market equilibrium that will prevail if only present costs and benefits are considered.
3
Q
Hotelling’s rule
A
states that in equilibrium the resource net price (market price minus extraction costs) must rise at a rate equal to the rate of interest.
