Benefit-Cost Analysis Is Very Well Suited to the Analysis of Projects

question 5

True/False

Benefit-cost analysis is very well suited to the analysis of projects with potentially large long-run impacts on the environment.
Because of the potentially large impact on future generations,it is difficult to determine the appropriate discount rate for benefit-cost analysis so instead,we may wish to avoid projects that reduce the long-run productive capabilities of our natural and environmental resource base,as well as avoiding making decisions that are irreversible,or that preclude taking other options in the future.

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Definitions:

Deformation

The process by which rocks change shape or position due to stress, heat, or pressure without breaking.

Subsidence

The gradual sinking of land or a structure, often due to underground material movement or removal of fluids from the soil.

Uplift

A geological process where Earth's crust is raised or elevated, often as a result of tectonic activity.

Isostasy

The equilibrium state of the Earth’s crust, where the forces pushing a land mass up are balanced by the weight of the mass itself pressing down.