What Are Two of the Main Theories That Shape International

question 45

Multiple Choice

What are two of the main theories that shape international environmental and development policies?

• A) Development theory and the EKC
• B) Modernization EKC
• C) Modernization theory and the ONGs
• D) Modernization theory alone
• E) Modernization theory and the EKC

---

Definitions:

Diminishing Marginal Returns

A principle stating that as additional units of a variable input are added to a fixed input, the additions to output will eventually decrease.

Law of Diminishing Returns

An economic principle stating that as investment in a particular area increases, the rate of profit from that investment, after a certain point, cannot continue to increase if other variables remain constant.

Total Cost

The aggregate of expenses related to the manufacturing of products or provision of services, which includes costs that stay the same as well as those that vary.

Fixed Costs

Expenses that do not vary with the level of production or business activity, such as rent, salaries, and insurance premiums, remaining constant regardless of output.