Environmentalists, Politicians, and Economists Have Different Perspectives on What Constitutes

question 26

Multiple Choice

Environmentalists, politicians, and economists have different perspectives on what constitutes appropriate environmental policy.Which of the following statements was probably made by an economist?

• A)"We take the position that there are rights involved here, rights to be protected from threats to your health, regardless of the costs involved."
• B)"Protecting the environment is so important that standards cannot be too high, and continuing improvements must be made regardless of cost."
• C)"Pollution is a moral issue that cannot be reduced to dollars and cents."
• D)"Clean air and water are things we can buy-if the price is right."

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Definitions:

Present Value

is the current worth of a future sum of money or stream of cash flows given a specified rate of return.

Discount Rate

The rate of interest utilized to calculate the current value of future cash flows in a discounted cash flow assessment.

Incremental Net Income

The additional net income that results from a specific business decision compared to an alternative.

Working Capital

Current assets minus current liabilities, indicating the liquidity available for a company's day-to-day operations.