AGEC 4603 : Quiz 5 Answer Key- Lecture Notes
Document Summary
Monday, november 21, 2011 scarcity, differences in values placed on goods, property rights, and public goods. Resources are generally classified into two categories: renewable and nonrenewable. Please provide the definition for each as well as provide an example of each. (6 pts) Renewable resources are capable of being replenished in the relevant time frame. They are sometimes referred to as flow resources. The water in the mississippi river is a renewable resource because it is continuously replenished. In a sufficiently long time frame, timber is a renewable resource. Nonrenewable resources have a limited supply in the relevant decision time frame. There is only a limited stock of nonrenewable resources. Underground water aquifers recharge very slowly, so they are considered to be a nonrenewable resource. Resource policy issues arise from four interdependent sources. Market value is the price that a resource will receive in the market place. It is determined by the conditions under which the resource is sold.
