A Leading Environmental Group Recently Published a Report Contending That

question 91

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.An economist would

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

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Definitions:

Adjusting Entries

Journal entries made at the end of an accounting period to allocate income and expenditures to the period in which they actually occurred.