Suppose an ardent environmentalist sought to preserve limited natural resources for future generations, she would, more than likely be arguing that oil and gas companies use an inappropriately
A)high discount rate when considering optimal resource use.
B)low discount rate when considering optimal resource use.
C)decreasing discount rate when considering optimal resource use.
D)flat discount rate when considering optimal resource use.

Question

Quizplus · Accepted Answer

A high discount rate would prioritize present gains over future benefits, making it more likely for companies to exploit natural resources for short-term profits rather than preserving them for future generations. This would be contrary to the goals of an environmentalist seeking to preserve limited natural resources.

Suppose an Ardent Environmentalist Sought to Preserve Limited Natural Resources