{"id":222118,"date":"2025-05-31T04:03:06","date_gmt":"2025-05-31T04:03:06","guid":{"rendered":"https:\/\/learnexams.com\/blog\/?p=222118"},"modified":"2025-05-31T04:03:08","modified_gmt":"2025-05-31T04:03:08","slug":"please-choose-the-answer-that-best-completes-this-sentence","status":"publish","type":"post","link":"https:\/\/www.learnexams.com\/blog\/2025\/05\/31\/please-choose-the-answer-that-best-completes-this-sentence\/","title":{"rendered":"Please choose the answer that best completes this sentence"},"content":{"rendered":"\n
\"\"<\/figure>\n\n\n\n
\"\"\/<\/figure>\n\n\n\n

Please choose the answer that best completes this sentence. The higher the discount rate, the amount of non-renewable resources that should be consumed in the the present, and the amount of non-renewable resources that should be consumed in the future, if the goal is to maximize the net benefits generated by consumption of the non-renewable resource. Select one: O a. the lesser, the greater O b. the older, the younger OC. an equal, an equal O d. the greater, the lesser<\/p>\n\n\n\n

The Correct Answer and Explanation is:<\/mark><\/strong><\/p>\n\n\n\n

The correct answer is:
d. the greater, the lesser<\/strong><\/p>\n\n\n\n

\n\n\n\n

Explanation<\/h3>\n\n\n\n

This question is rooted in resource economics<\/strong>, particularly in the optimal allocation of non-renewable resources<\/strong> over time under discounting<\/strong>. The discount rate<\/strong> reflects how much society values present consumption over future consumption. A higher discount rate<\/strong> implies that future benefits are valued less<\/strong> compared to present benefits.<\/p>\n\n\n\n

When the discount rate increases, it makes present consumption relatively more valuable<\/strong> than future consumption. As a result, decision-makers are incentivized to extract and consume more non-renewable resources now<\/strong> rather than conserving them for future use. This leads to the greater<\/strong> use of non-renewable resources in the present<\/strong>.<\/p>\n\n\n\n

Conversely, a higher discount rate reduces the value of future consumption, which makes conserving resources for future use less appealing. Therefore, lesser<\/strong> non-renewable resources are allocated for consumption in the future<\/strong>.<\/p>\n\n\n\n

This behavior aligns with the principle of intertemporal choice<\/strong>, where economic agents allocate resources over time to maximize overall utility or benefit. In the context of non-renewable resources like fossil fuels or minerals, an increase in the discount rate causes a shift in consumption toward the present, potentially leading to faster depletion<\/strong> of the resource.<\/p>\n\n\n\n

This concept is particularly important in sustainability and environmental policy<\/strong>. A low discount rate<\/strong> favors conservation and long-term planning, while a high discount rate<\/strong> supports immediate exploitation for short-term gains. Policymakers often debate the appropriate discount rate when evaluating long-term environmental impacts, such as climate change mitigation or biodiversity preservation.<\/p>\n\n\n\n

In summary, a higher discount rate<\/strong> results in greater present consumption<\/strong> and lesser future consumption<\/strong> of non-renewable resources, which is accurately captured by option (d): the greater, the lesser<\/strong>.<\/p>\n\n\n\n

\"\"<\/figure>\n","protected":false},"excerpt":{"rendered":"

Please choose the answer that best completes this sentence. The higher the discount rate, the amount of non-renewable resources that should be consumed in the the present, and the amount of non-renewable resources that should be consumed in the future, if the goal is to maximize the net benefits generated by consumption of the non-renewable […]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"site-sidebar-layout":"default","site-content-layout":"","ast-site-content-layout":"default","site-content-style":"default","site-sidebar-style":"default","ast-global-header-display":"","ast-banner-title-visibility":"","ast-main-header-display":"","ast-hfb-above-header-display":"","ast-hfb-below-header-display":"","ast-hfb-mobile-header-display":"","site-post-title":"","ast-breadcrumbs-content":"","ast-featured-img":"","footer-sml-layout":"","ast-disable-related-posts":"","theme-transparent-header-meta":"","adv-header-id-meta":"","stick-header-meta":"","header-above-stick-meta":"","header-main-stick-meta":"","header-below-stick-meta":"","astra-migrate-meta-layouts":"default","ast-page-background-enabled":"default","ast-page-background-meta":{"desktop":{"background-color":"","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"tablet":{"background-color":"","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"mobile":{"background-color":"","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""}},"ast-content-background-meta":{"desktop":{"background-color":"var(--ast-global-color-5)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"tablet":{"background-color":"var(--ast-global-color-5)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"mobile":{"background-color":"var(--ast-global-color-5)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""}},"footnotes":""},"categories":[25],"tags":[],"class_list":["post-222118","post","type-post","status-publish","format-standard","hentry","category-exams-certification"],"_links":{"self":[{"href":"https:\/\/www.learnexams.com\/blog\/wp-json\/wp\/v2\/posts\/222118","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.learnexams.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.learnexams.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.learnexams.com\/blog\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.learnexams.com\/blog\/wp-json\/wp\/v2\/comments?post=222118"}],"version-history":[{"count":0,"href":"https:\/\/www.learnexams.com\/blog\/wp-json\/wp\/v2\/posts\/222118\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.learnexams.com\/blog\/wp-json\/wp\/v2\/media?parent=222118"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.learnexams.com\/blog\/wp-json\/wp\/v2\/categories?post=222118"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.learnexams.com\/blog\/wp-json\/wp\/v2\/tags?post=222118"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}