Joe Works for an Environmental Agency

question 69

Multiple Choice

Joe works for an environmental agency.Every day he chooses to fill his reusable water bottle and bring it to work instead of bringing in a plastic disposable water bottle each day.Joe most likely derives utility from:

• A) the taste of water from his reusable water bottle.
• B) the knowledge that he is doing something good for the environment by not using plastic water bottles.
• C) the knowledge that others in his firm observe his environmentally-friendly choice of water bottle.
• D) Joe likely derives utility from all three of these sources.

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Definitions:

Cash Flow Hedge

A financial strategy used to manage the risk of fluctuations in cash flow due to changes in exchange rates, interest rates, or commodity prices.

Other Comprehensive Income

Income that is not part of net income, including items that have not been realized or that are not typical earnings, such as foreign currency translation adjustments.

IFRS

International Financial Reporting Standards, a set of accounting standards developed by the International Accounting Standards Board (IASB) that is globally accepted.

Fair Value

The price at which an asset or liability could be exchanged between knowledgeable, willing parties in an arm's length transaction.