Rising Prices Help Control the Process of Resource Depletion by

question 203

Multiple Choice

Rising prices help control the process of resource depletion by

• A)encouraging consumption and waste.
• B)stimulating more efficient use of the depletable resource.
• C)disincentivizing resource-saving innovation.
• D)stimulating resource imports.

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Definitions:

Sale and Leaseback Arrangement

A financial transaction where one sells an asset and leases it back for the long term; thus, one continues to use the asset but no longer owns it.

Lessee

An individual or entity that leases or rents an asset from its owner, known as the lessor.

Captive Finance Company

Wholly owned subsidiary that handles credit extension and receivables financing through commercial paper.