The optimal resource use for a limited natural resource is
A)more front loaded with a higher discount rate.
B)more back loaded with a higher discount rate.
C)unrelated to the discount rate.
D)more likely to be u-shaped with a higher interest rate.

Question

Quizplus · Accepted Answer

A higher discount rate decreases the present value of future benefits, making it more attractive to use resources sooner rather than later, leading to a more front-loaded resource use.

The Optimal Resource Use for a Limited Natural Resource Is