In an Attempt to Reduce Poaching of Elephant Tusks for Ivory

question 108

Multiple Choice

In an attempt to reduce poaching of elephant tusks for ivory, officials in Kenya burned illegally gathered ivory.Economists tend to point out that

• A)poaching can be reduced with price supports for ivory.
• B)the supply of ivory has fallen, leading to an increase in price and reward for poaching.
• C)burning ivory decreases demand, leading to lower prices and reward for poaching.
• D)the demand for ivory is higher, leading to an increase in price and reward for poaching.
• E)burning ivory raises demand, and controlled prices will lead to even greater poaching.

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Definitions:

Allowance Method

An accounting technique that companies use to account for bad debts by predicting what percentage of outstanding accounts will become uncollectible.

Bad Debt Expense

An anticipated expense account reflecting the estimated amount of receivables that a company does not expect to collect.

Finance Company

A business that provides loans to individuals and companies, apart from traditional bank lending activities, including consumer credit, leasing, and investment financing.

Statement Of Cash Flows

A financial statement that summarizes information about the cash inflows (receipts) and cash outflows (payments) for a specific period of time.