Which of the following serves as a basis for doomsday forecasts?
A)Crowding out.
B)The price mechanism.
C)Resource constraints.
D)Substitution effects.

Question

Quizplus · Accepted Answer

Resource constraints, such as limited availability of non-renewable resources or environmental degradation, can lead to doomsday forecasts in which the depletion of resources causes catastrophic consequences for human civilizations. Crowding out, the price mechanism, and substitution effects may all have significant effects on economic outcomes, but do not necessarily serve as the basis for doomsday forecasts.

Which of the Following Serves as a Basis for Doomsday