Read the following scenario, and answer the questions below.

As an economist, you are asked to analyze the present versus future value of fossil fuel resources in a newly discovered oil field. You determine that the oil which would take 1 year to extract) is estimated to be worth $10 million in today's market.

-What is the term for the economic practice that you are being asked to do by assessing present versus future value of the resource?
A)Temporal market valuation
B)Discounting
C)Cost/benefit analysis
D)Resource rating

Question

Read the following scenario, and answer the questions below.

As an economist, you are asked to analyze the present versus future value of fossil fuel resources in a newly discovered oil field. You determine that the oil which would take 1 year to extract) is estimated to be worth $10 million in today's market.

-What is the term for the economic practice that you are being asked to do by assessing present versus future value of the resource?
A)Temporal market valuation
B)Discounting
C)Cost/benefit analysis
D)Resource rating

Quizplus · Accepted Answer

The Answer is B

Read the Following Scenario, and Answer the Questions Below