What Is One Environmental Benefit of Affluence

question 59

Multiple Choice

What is one environmental benefit of affluence?

• A) Increasing wealth allows for an increased capacity for resource consumption.
• B) Increased wealth provides resources to apply toward the creation of environmentally beneficial technologies.
• C) Increasing affluence often leads to a desire to travel widely and frequently in order to see the world.
• D) Increasing affluence in developed nations leads to increased affluence in less-developed countries.
• E) Increasing affluence results in less consumption in all countries.

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Definitions:

Equilibrium Risk Premium

The expected return on a risky asset over the risk-free rate that brings the supply and demand for the asset into balance.

Risk-free Rate

The interest rate at which an investor can invest in an absolutely risk-free security over a specified period.

Arbitrage Opportunity

A situation where a trader can profit from differences in price of the same or similar financial instruments on different markets or in different forms.

Risk-free Rate

The theoretical rate of return of an investment with no risk of financial loss, often represented by government bonds.