A Leading Environmental Group Recently Published a Report Contending That

question 12

Multiple Choice

A leading environmental group recently published a report contending that humans are running a "resource deficit" because we are using natural resources faster than they can be regenerated. The group claims that this means that economic growth will eventually stop, and will even be reversed. How would an economist respond to this report?

• A)An economist would agree with the report, and would point to rising natural resource prices as evidence.
• B)An economist would agree with the report, but wouldn't think it was important because growth will not slow down for several centuries.
• C)An economist would disagree with the report, in part because it ignores the mitigating effects of technological change.
• D)An economist would disagree with the report because labour and capital are the primary determinants of growth, and since they are plentiful, growth will not slow down.

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Definitions:

External Locus

The belief that one's successes or failures result from external factors beyond their control, as opposed to internal factors like effort and decision-making.

Fate

A predetermined course of events often considered to be beyond human control.

Sensation Seeking

A personality trait characterized by the search for experiences and feelings that are varied, novel, complex, and intense, and by the readiness to take physical, social, legal, and financial risks for the sake of such experiences.

Decline With Age

Refers to the natural decrease in physical, cognitive, and functional abilities as individuals become older.