Question :
121) Resource exhaustion not considered to be among the main : 1384438
121) Resource exhaustion is not considered to be among the main factors that limit economic growth because
A) the population growth rate is decreasing over time and projected to be negative in the future.
B) different types of inputs are used in production over time.
C) resources can be obtained from other planets as technology advances.
D) technological advances change the nature of production over time and also make more resources available for extraction.
E) there are limitless supplies of resources, at high enough prices.
122) In 1950, when the world’s population was 2.5 billion, it was unimaginable that the world could ever produce enough food to feed the present world population of 7 billion. Such a belief was likely based on the following erroneous assumptions:
A) food production increases geometrically and population increases arithmetically.
B) the potential GDP of all countries is constant, and food production would comprise a declining share of GDP.
C) the state of technology is constant and the stock of resources is fixed.
D) global political and economic cooperation would be a necessary condition to feed such a growing population.
123) Suppose that most of the world’s population would like to achieve a standard of living equal to that of the average Canadian family. Such a rise in global living standards is
A) not possible given the world’s current resources and the current state of technology.
B) possible with better political and economic cooperation around the world.
C) possible given the world’s current resources and current state of technology.
D) not possible under any circumstances.
E) possible with no adverse effects on pollution and environmental degradation.
124) In the early 1970s, a group called the “Club of Rome” published a book entitled The Limits to Growth which concluded that industrialized countries faced an imminent absolute limit to growth. Did this prediction come true in the subsequent years?
A) No, because as income levels rose, we could afford to purchase more resources and increase growth.
B) No, because technology has changed, allowing for new discoveries, development, and more efficient use of resources.
C) Yes, all growth in recent decades has been in the non-industrialized and developing economies.
D) Yes, there has been no change in absolute levels of output of industrialized countries.
125) Economic growth allows increasing numbers of people around the world to enjoy higher incomes and to escape (material) poverty. Which of the following statements best describes the current limits to this growth?
A) Rising consumption due to higher incomes puts increasing pressure on the world’s natural ecosystems and its ability to cope with further pollution and environmental degradation.
B) The supply of financial capital is insufficient to maintain this level of economic growth.
C) The inability of developing countries to increase their human capital will prevent further economic growth.
D) Increasing prices of natural resources will limit further economic growth.
E) Innovation and technological change with respect to resource development have been exhausted.
