A key element in an economist's analysis of whether a company is making rational decisions with regard to their exploitation of a natural resource is the notion of
A)sentimental value.
B)present value.
C)ignored value.
D)created value.

Question

Quizplus · Accepted Answer

Present value is an important concept in economics that helps assess the economic efficiency of a company's use of natural resources. It involves calculating the current value of future expected cash flows resulting from the exploitation of a resource. By comparing this value to the costs of exploitation, economists can determine whether a company is making rational decisions about the use of the resource. The other options, sentimental value, ignored value, and created value, are not directly relevant to the economic analysis of natural resource exploitation.

A Key Element in an Economist's Analysis of Whether a Company