Globalization Has Scale Effects That Arise from the Expansion of Economic

question 28

Multiple Choice

Globalization has scale effects that arise from the expansion of economic activity.These scale effects are positive because

• A) rising incomes make the cost of environment protection less desirable.
• B) as incomes rise, the greater demand for energy will make older sources of energy no longer cost effective.
• C) as the scale of economic activity expands, waste generation will increase.
• D) the diffusion of improved environmental technology will automatically accompany greater trade and foreign investment.
• E) greater pollution is a small price to pay for greater convenience and cheaper consumption.

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Definitions:

Current Yield

Current yield is a financial term used to describe the annual income (interest or dividends) earned from an investment, expressed as a percentage of the current price of the security.

Coupon Rate

The yearly interest yield from a bond, shown as a percentage of its nominal value.

Yield To Maturity

The total return anticipated on a bond if it is held until the end of its lifetime, factoring in its current market price, face value, interest rate, and time to maturity.

Market Interest Rates

The prevailing rates at which borrowers can obtain loans and lenders can invest funds in the broader financial market.