Question
Which of the following about non-renewable resource stock (oil in the ground) in NOT true? Select one: a.If oil stocks in the ground were gaining
Which of the following about non-renewable resource stock (oil in the ground) in NOT true?
Select one:
a.If oil stocks in the ground were gaining in value at a rate faster than the rate of interest, resource owners would do extract all of the oil, sell it, and invest the proceeds.
b.If oil stocks in the ground were gaining in value at a rate faster than the rate of interest, resource owners would extract nothing in the near term, leaving stocks in the ground to increase value relative to money in the bank
c.Nonrenewable resource stocks should increase in value at a rate equal to that of other types of assets in the market.
d.If oil stocks in the ground were gaining in value at a rate slower than the rate of interest, resource owners would do extract all of the oil, sell it, and invest the proceeds.
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