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.

---

Definitions:

Net Capital

The total value of a company’s or individual's assets minus liabilities, representing the owner's equity or net worth.

Desirable Investment

An investment opportunity deemed attractive due to factors like potential for high returns, stability, or alignment with the investor's financial goals and risk tolerance.

Exchange Rate

How much one currency is worth in terms of a different currency.

Net Capital

The difference between a company's total assets minus its total liabilities, indicating its overall financial health and stability.