|
HOTELLING'S RULE: The notion that efficiency and competitive market forces will lead to an increase of scarcity rent of a finite, exhaustible resource that is equal to the interest rate. The logic behind Hotelling's Rule is that as a finite fossil fuel is depleted, less is available in the future, causing scarcity rent, and thus the resource price, to increase. An increase in the resource price reduces the quantity demanded and conserves more for future consumption. When finite, exhaustible resource markets are competitive, this process generates an efficient allocation over time.
Visit the GLOSS*arama
|
|
![](../images/bar_teal.jpg)
|
|
THIRD RULE OF INEQUALITY The third of seven basic rules of the economy, stating that resources, income, and wealth are not equally distributed. Some people have more resources, income, and wealth and some people have less. Such inequality is due to natural abilities, acquired talents, market control, political power, and sheer luck.
Complete Entry | Visit the WEB*pedia |
![](../images/bar_dkblue.jpg)
![](../images/bar_dkblue.jpg)
|
|
GRAY SKITTERY [What's This?]
Today, you are likely to spend a great deal of time flipping through mail order catalogs looking to buy either a genuine down-filled comforter or a 200-foot blue garden hose. Be on the lookout for high interest rates. Your Complete Scope
This isn't me! What am I?
|
|
Francis Bacon (1561-1626), a champion of the scientific method, died when he caught a severe cold while attempting to preserve a chicken by filling it with snow.
|
|
"Old age isn't so bad when you consider the alternative. " -- Cato, Roman orator
|
|
WE Walrasian Equilibrium
|
|
Tell us what you think about AmosWEB. Like what you see? Have suggestions for improvements? Let us know. Click the User Feedback link.
User Feedback
|
![](../images/bar_ltblue.jpg)
|