Martin Keeps a Worm Bin in His Basement Because They

question 28

Multiple Choice

Martin keeps a worm bin in his basement because they need cooler temperatures to survive. He feeds them about 1 pound of kitchen scraps each week. One summer the temperatures rise above the optimal temperature for the red worms (~ 85°F) and many in his colony die. However, those that survive continue to reproduce and within 6 months his colony is again thriving. The next summer, unusually warm temperatures again cause the basement temperatures to rise above 85°F for 2 days in a row. Surprisingly, Martin noticed that only a small portion of the worm colony died. What is the best explanation for this?

• A) After the first summer a new species of worm evolved.
• B) The worms sensed that the temperature was going to be hot in the future and adapted.
• C) The worms learned how to tolerate higher temperatures.
• D) The worms surviving the first year had a higher heat tolerance and passed this trait to their offspring.
• E) Worms are insensitive to heat changes.

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Definitions:

Incremental Cash Flows

The extra cash flow an organization gains by initiating a new project.

Total Cash Flows

The aggregate sum of cash entering and leaving a corporation, which plays a significant role in determining its financial fluidity.

Income Taxes

Taxes levied on both earned income (wages, salaries) and unearned income (dividends, interest), imposed by government authorities.

Sunk Cost

A cost that has already been incurred and cannot be recovered, and should not affect future investment or spending decisions.