FRM045-* Online Exam

•In the Principles of How People Make Decisions,

Principle 1. People Faces Tradeoffs includes

• •Going to a party the night before your midterm leaves less time for studying

• To get one thing that we like, we must give up another thing that we like.

• •Having more money to buy stuff requires working longer hours, which leaves less time for leisure.

• all of these

All decisions involve tradeoffs

• true

• false

The Principles of How People Make Decisions, These are

Principle 2. The Cost of Something is What You Give Up to Get it, except

• •Going to college for a year is not just the tuition, books and fees, but also the foregone wages.

• The cost of an Agarwood tree is not just the seedling cost, the fertilizer, the labor but it also includes the cost of space planted wherein you have landscaped the place otherwise

• •Seeing a movie is not just the price of the ticket

• •Protecting the environment requires resources that could otherwise be used to produce consumer goods.

“Everything has a price.”

• true

• false

Make decisions by evaluating _______________ of marginal changes – incremental adjustments to an existing plan.

• the cost and benefits

• profit

• adverse impacts

actual use of the goods and services by consumers. The ultimate goal of the whole productive effort and the satisfaction desired or attained.

• Consumption

• production

• utilization

• profitability

the harvesting of forest crops with due regard to renewal by artificial planting and natural regeneration.

• conservation

• utilization

• consumption

• Extraction

land management and consists largely of silviculture and protection. The primary production of forest crops and services such as establishment of tree farms and ITPs in forestland.

• preparation

• consumption

• utilization

Requirements of a Forest Business

• •License obtained from the DENR

  •Business permit obtained from local government

• •Capital to operate: cash and fixed capital

  •Place of business, possibility proximate to market places

• •Labor recruitment (skilled and unskilled labor)

  •Supply of raw materials

• all of these

• none of these

Kinds Forest Business, except

• tailoring

• Commercial logging

• Sawmilling, veneer and plywood

• Establishment of forest resorts and recreational parks