Discounting Liabilities Using the Present Value Technique Is Not Ecologically

question 30

Multiple Choice

Discounting liabilities using the present value technique is not ecologically sound because:

• A) Environmental liabilities are hard to measure.
• B) The value of a dollar in the present is greater than the value of a dollar in the future.
• C) Discounting has the effect of reducing the apparent size of the cost of future environmental clean-up and so encourages entities to undertake projects that have large negative (distant) future impacts on the environment.
• D) It discourages entities from providing sufficient reserves to restore environments after project completion.
• E) All of the given answers.

Understand the concepts and efficiency implications of different market structures, including competitive markets, monopolies, monopolistic competition, and oligopolies.

Analyze the role and impact of cartels, including their formation, maintenance, and effects on efficiency and prices.

Evaluate the effects of advertising on economic efficiency, both when it enhances and impedes efficiency.

Recognize the influence of strategic behavior and collusion in oligopolistic markets.

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Definitions:

Classical Conditioning

An instructional process where two stimuli are frequently paired together; the response, initially triggered by the second stimulus, is subsequently drawn by the first stimulus alone.

Extinction

In psychology, the gradual weakening and disappearance of a conditioned response when the conditioned stimulus is repeatedly presented without the unconditioned stimulus.

Conditioned Stimulus

A stimulus that was originally neutral but, after association with an unconditioned stimulus, leads to eliciting a conditioned response.

Classical Conditioning

A fundamental learning technique established by the association between an initially neutral stimulus and a naturally occurring stimulus, leading to a learned response.