Refer to Scenario 1

question 9

Multiple Choice

Refer to Scenario 1.2 below to answer the question(s) that follow.
SCENARIO 1.2: A scientist wants to understand the relationship between automobile emissions and the level of global warming. The scientist collects data on the volume of automobile emissions and the levels of global warming over time. The scientist concludes that a 1% increase in automobile emissions causes a 0.0003% increase in average global temperatures. From this information he concludes that the automobile emissions are harmful to the environment and should be reduced to stop the increase in global temperatures.
-Refer to Scenario 1.2. The statement, "automobile emissions are harmful to the environment and should be reduced to stop the increase in global temperatures," is an example of

• A) positive economics.
• B) marginal economics.
• C) normative economics.
• D) the fallacy of logic.

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Definitions:

Natural Resources

Assets that occur in nature, such as minerals, timber, and water, which can be used to produce goods and services.

Research and Development

Activities undertaken by a company to innovate and introduce new products or services, often involving experimental or theoretical work.

Fixed Asset Turnover

A financial ratio that measures a company's efficiency in using its fixed assets to generate sales.

Accelerated Depreciation

A depreciation method that allows for a higher depreciation charge in the early years of an asset's life and less in the later years.