Predictions of Severe Shortages Due to Impending Natural Resource Depletion

question 205

Multiple Choice

Predictions of severe shortages due to impending natural resource depletion

• A) are widely accepted by resource economists even though such predictions are a relatively new occurrence.
• B) have been wrong in the past, but most resource economists believe that the threat of resource depletion is now far more severe than ever before.
• C) are typically made without adequate recognition and consideration of resource price elasticities.
• D) typically assume that price elasticities are greater than they really are.

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Definitions:

Management Manipulation

The unethical practice of altering financial data or reports to distort a company’s financial health or performance.

Asset Impairments

A reduction in the book value of an asset when its market value falls below its carrying amount on the balance sheet.

Fair Value

The estimated market price of an asset or liability based on current conditions and mutually informed buyer and seller transactions.

Construction in Progress Account

An account in the balance sheet that accumulates costs related to the construction of a long-term asset until the asset is ready for use, at which point the total cost is transferred to the fixed assets account.