How Is Net Ecosystem Production (NEP)typically Estimated in Ecosystems

question 19

Multiple Choice

How is net ecosystem production (NEP) typically estimated in ecosystems?

• A) the ratio of producers to consumers
• B) the amount of heat energy released by the ecosystem
• C) the net flux of CO₂ or O₂ in or out of an ecosystem
• D) the rate of decomposition by detrivores
• E) the annual total of incoming solar radiation per unit of area

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Definitions:

Portfolio Theory

A financial model that describes how to assemble a diversified portfolio to maximize returns and minimize risk based on expected returns and the variance of each asset.

Capital Budgeting

The process by which investors and managers evaluate the long-term investments and projects of a company in terms of their potential profitability and benefits.

Probability Distribution

A probability distribution is a statistical function that describes all the possible values and likelihoods that a random variable can take within a given range.

NPV

Net Present Value; a method used in capital budgeting to evaluate the profitability of an investment or project, calculating the net difference between present value of cash inflows and outflows over a period.