How Are the Economic Forces That Govern Renewable Resources Different

question 195

Multiple Choice

How are the economic forces that govern renewable resources different than those that govern non-renewable resources?

• A) Non-renewable resources must be protected by government policies to prevent depletion.
• B) Once non-renewable resources are used up they are gone forever.
• C) Both renewable and non-renewable resources have become scarcer over time so the economic forces at work are the same.
• D) Renewable resources are not subject to the laws of economics since the scarcity condition no longer holds.

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Definitions:

Cash Payments

Refers to transactions where money is physically paid out or deducted from an account to settle obligations or acquire goods and services.

Operating Cash Flow

Cash generated from a company's regular business operations, excluding investment and financing activities.

Accounts Receivable

Money owed to a business by its customers for products or services that have been delivered but not yet paid for.

Long-Term Asset

Assets owned by a company that are intended for use over a long duration, typically more than one year, such as real estate, machinery, and patents.