Read the Following Scenario and Answer the Question Below

question 25

Multiple Choice

Read the following scenario and answer the question below.
The Intergovernmental Panel on Climate Change reports that physical, biological, and economic evidence exists confirming global climate change due to human -produced greenhouse gases. Although the United States emits most of Earthʹs carbon dioxide, its policies do not reflect concern over its environmental effects. The United States failed to ratify the Kyoto Protocol, an international agreement signed by other developed nations to reduce carbon dioxide emissions. Requested voluntary reductions of carbon dioxide emissions have not been effective in reducing greenhouse gases. Revisions to the 1970 Clean Air Act, called the ʺClear Skies Initiative,ʺ were proposed to limit mercury, nitric oxides, and sulfur oxide emissions from power plants. Nicknamed by Robert F. Kennedy, Jr., as the ʺClear Lies Initiative,ʺ this proposal did not specifically address emission of carbon dioxide, and its loopholes precluded older power plants from modernizing, seemingly supporting polluting industries with political influence. Environmentalists are arguing for immediate action, including stricter laws to limit power plant carbon dioxide emissions and provide subsidies for renewable energy. They favor ʺportfolio standards,ʺ requiring electric companies to provide clean energy alternatives to consumers and ʺgreen tags,ʺ
ʺwind certificates,ʺ and ʺgreen pricingʺ to support the use of alternative fuels.
-Environmentalists advocate immediate intervention regarding global climate change because ______________.

• A) most are heavily invested in fossil fuel industries
• B) they favor anthropocentric ethical principles
• C) most live in areas most affected by global climate change
• D) they favor the precautionary principle
• E) they are concerned about the global economic losses sustained due to global climate change

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Definitions:

Investment Project

A project that requires capital expenditures for the purpose of generating future income or profit.

Annual Cost Savings

The reduction in costs achieved during a specific year, often as a result of process improvements or efficiency gains.

Discount Factor(s)

A multiplier for determining the present value of future cash flows or investments.

Pretax Return

The profit a company generates before taxes are taken into account, often expressed as a percentage of sales or investment.