Many Businesses Are Exploring and Adopting the "Design for the Environment

question 31

Multiple Choice

Many businesses are exploring and adopting the "design for the environment." Although some of the following may occur as spin-offs, which response is the primary emphasis of the design for the environment?

• A) Preventing environmental problems to save money and stay competitive in future markets
• B) Public relations about their environmental policies
• C) Recycling their products
• D) Hiring more environmental science and environmental studies graduates
• E) All of these are emphasized equally by businesses adopting and exploring the "design for the environment."

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Definitions:

Adverse Selection

A situation where asymmetric information leads to the selection of poor risks or unwanted results, commonly discussed in insurance markets and financial services.

Moral Hazard

The situation where one party is more likely to take risks because the negative consequences of those risks will be felt by another party.

Asymmetric Information

Occurs when one party in a transaction has more or superior information compared to another, affecting decision-making.

Moral Hazard

A situation in economics and finance where one party takes more risks because another party bears the cost of those risks.