Economic Theory Suggests That If Natural Resources Can Be Held

question 218

Multiple Choice

Economic theory suggests that if natural resources can be held as private property, then

• A) conservation will be nonexistent.
• B) owners will have an incentive not to abuse them.
• C) natural resources will be sold off for immediate use.
• D) people will simply hold them and refuse to make them available.

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Definitions:

Management Accounting Information

Financial data and reports that are used by internal management for decision-making, planning, and control purposes.

Internal Management

Refers to the administrative practices, policies, and procedures implemented within a company to ensure its smooth operation and achievement of goals.

Institutional Theory

A theory that examines the extent to which companies can become successful by conforming to the norms and rules of their environmental context.

Environmental Management Accounting System

An accounting framework that integrates environmental and financial information to aid in internal environmental management decisions.