The precautionary principle is most likely to be applied when some impacts
a. Involve option values
b. Are irreversible
c. Are converted to present values
d. Are estimated using the avoided cost approach
e. Involve indirect use values
Ans: b. Are irreversible
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Which of the following statements best describes the relationship between a stronger currency and exports?
a. A stronger euro discourages exports by a European firm because it makes the costs of production in the domestic currency higher relative to the sales revenues earned in another country. b. A stronger euro encourages exports by a European firm because it makes the costs of production in the domestic currency higher relative to the sales revenues earned in another country. c. A stronger euro discourages exports by a European firm because it makes the costs of production in the domestic currency lower relative to the sales revenues earned in another country. d. A stronger euro encourages exports by a European firm because it makes the costs of production in the domestic currency lower relative to the sales revenues earned in another country.
The basic principle that explains the demand for a factor of production is the
a. principle of marginal productivity. b. Hotelling principle. c. principle of opportunity cost. d. Ramsey pricing principle.
If the price level does not fall or only falls very slowly, then the result will be a prolonged period of
A. inflation whenever supply increases. B. production below potential GDP. C. production above potential GDP. D. rapid price increases when demand changes.
People who buy used homes often insist on having a "home inspection" before they finalize the purchase. If the house fails the inspection the buyer has the right to refuse to buy the house unless the seller fixes whatever problems are found. Does this help or hurt the seller?
What will be an ideal response?