The Spill of Cyanide into the Tisza and Danube Rivers

question 85

Multiple Choice

The spill of cyanide into the Tisza and Danube Rivers in 2000 could have been prevented if

• A) the computer systems monitoring the cyanide volume had not crashed
• B) fewer people had withdrawn water from the rivers so the overall flow rate was lower
• C) an earthquake warning system had been in place to warn dam managers of the impending quake that broke the dam
• D) the mining company had installed a stronger containment dam and a backup settling pond to prevent leakage
• E) a newer, more technologically sound settling pond had been in place

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Definitions:

Interest Rate

The proportion of a specified sum that is added as a charge for borrowing it, usually stated as an annual rate.

Utility Function

A mathematical representation describing how a consumer ranks different bundles of goods according to levels of satisfaction.

Risk Averse

A preference for guaranteed outcomes over those with uncertainty, even if the uncertain outcomes might offer a higher expected return.

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A gambling proposition where the outcome is determined by the flip of a coin, representing a 50/50 chance of winning or losing.