Which Statement About Swidden Agriculture Is True

question 104

Multiple Choice

Which statement about swidden agriculture is true?

• A) It produces ash that is removed from the gardening area and used for medicinal purposes.
• B) It is ecologically sustainable with low population densities.
• C) It can be used as a sustainable way to clear tropical forests for cattle raising.
• D) It depletes soil more quickly than animal husbandry.

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Definitions:

Cost of Equity

The return that investors expect for investing in a company's equity, often calculated using models like the Capital Asset Pricing Model (CAPM).

Market Risk Premium

Slope of the Security Market Line; the difference between the expected return on a market portfolio and the risk-free rate.

Cost of Equity

The return a company requires to decide if an investment meets capital return requirements and can finance its operations.

Risk-Free Rate

The return on an investment with zero risk, typically associated with government bonds.