ECON MICRO
5th Edition
ISBN: 9781337000536
Author: William A. McEachern
Publisher: Cengage Learning
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Question
Chapter 17, Problem 1.1P
To determine
The appropriate words to be filled in the blanks to complete the given sentences
Introduction:
The factors either economic or productive or both required for completion of an activity or for undertaking an enterprise or for achieving favorable outcome are known as resources. In economics, resources are generally classified as natural resource, human resources and capital resources.
Expert Solution & Answer
Explanation of Solution
a. Resources for which periodic use can be continued indefinitely are known as renewable resources.
The resources that are capable of replenishing themselves by natural processes to overcome depletion caused by consumption and usage are known as renewable resources.
b. Resources that are available only in a fixed amount are exhaustible resources.
The resources which are limited in quantity and do not have the ability to replenish themselves and those resources that get exhausted by consumption and usage are known as exhaustible resources.
c. The possibility that an open-access resource is used until the net marginal value of additional use equals zero is known as the common pool problem.
The measures that need to be implemented for the use of common pool resources till the marginal
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