What Is the Best Description of an Ecological Deficit

question 71

Multiple Choice

What is the best description of an ecological deficit?

• A) The total ecological footprint is larger than the biological capacity to replenish renewable resources.
• B) The total ecological footprint is smaller than the biological capacity to replenish renewable resources.
• C) All nonrenewable resources have been exhausted and there are no renewable resources available.
• D) The total ecological footprint is equal to the sustainable yield of renewable resources.
• E) The total ecological footprint only involves the use of nonrenewable resources.

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Definitions:

Weighted Average Cost of Capital (WACC)

A calculation of a firm's cost of capital where each category of capital is proportionately weighted, used to assess the average rate a company is expected to pay to its security holders.

Cost of Equity

The return a company requires to decide if an investment meets capital return requirements, often estimated using the Capital Asset Pricing Model (CAPM).

Pre-Tax Cost of Debt

The rate of return that a company pays on its debt, before taking into account tax deductions.

Face Value

The nominal value printed on a bond or security which indicates its worth at maturity but does not necessarily reflect its market value.