6 Questions
Timber production does not involve any opportunity cost.
False
In a competitive market, the prices of land and labor reflect their opportunity costs.
True
Land, labor, and capital cannot be substituted in timber production.
False
The inputs in timber production always follow the law of increasing returns.
False
Market failure occurs when resources are not allocated efficiently in a free market.
True
Policy failure is rare as governments always make decisions for the benefit of everyone.
False
Test your knowledge on forest economics and the role of government in market economies with this quiz. Questions cover topics such as economic efficiency, production functions, cost functions, market equilibriums, and profit maximization.
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