Some Logging Companies That Exploit Tree Species in Northern Boreal

question 173

Multiple Choice

Some logging companies that exploit tree species in northern boreal forests plant a tree of the same species for each that is cut down. This is an example of:

• A)the Red Queen hypothesis.
• B)sustainable development.
• C)adaptations to climate change.
• D)overexploitation of natural resources.

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Definitions:

Physical Capital

The stock of tangible, non-financial assets that are used in the production of goods and services, such as machinery and buildings.

Opportunity Costs

The cost of an alternative that must be forgone in order to pursue a certain action, essentially what is sacrificed to choose one option over another.

Subsidies

Financial support provided by governments to individuals, organizations, or industries to encourage certain activities or reduce costs.

Comparative Advantage

The ability of an individual or country to produce a particular good or service at a lower opportunity cost than its competitors.