A Basic Economic Problem Encountered When Evaluating Some of the More

question 54

Multiple Choice

A basic economic problem encountered when evaluating some of the more recent environmental initiatives,such as proposals designed to halt global warming or reduce acid rain,is that

• A) economic growth will be increased in the developing countries at the expense of growth in developed countries.
• B) since environmental changes are not affected by human production or consumption, these policies have no impact on the problem.
• C) the cost of these environmental initiatives may exceed the estimated value of the benefits.
• D) since all such proposals are demonstrated to be effective, there is no means to decide which approach is best.
• E) most efforts to control pollution result in the creation of a new form of pollution; for example, reducing atmospheric pollution increases water pollution.

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Definitions:

Foreclosure

A legal process by which a lender attempts to recover the balance of a loan from a borrower who has stopped making payments by forcing the sale of the asset used as the collateral for the loan.

Mortgage

A legal agreement by which a bank or creditor lends money at interest in exchange for taking title of the debtor's property, with the condition that the conveyance of title becomes void upon the payment of the debt.

Innocent Misrepresentation

A false statement made by someone who believes it to be true, leading to a contractual agreement that can be voided.

Remedies

Legal means for enforcing a right or redressing a wrong, including monetary damages and specific performance.