Question

Twenty years ago, Balzania put in place regulations requiring operators of surface mines to pay for the reclamation of mined-out land. Since then, reclamation technology has not improved. Yet, the average reclamation cost for a surface coal mine being reclaimed today is only four dollars per ton of coal that the mine produced, less than half what it cost to reclaim surface mines in the years immediately after the regulations took effect.
Which of the following, if true, most helps to account for the drop in reclamation costs described?


A. Even after Balzania began requiring surface mine operators to pay reclamation costs, coal mines in Balzania continued to be less expensive to operate than coal mines in almost any other country.

B. In the twenty years since the regulations took effect, the use of coal as a fuel has declined from the level it was at in the previous twenty years.

C. Mine operators have generally ceased surface mining in the mountainous areas of Balzania because reclamation costs per ton of coal produced are particularly high for mines in such areas.

D. Even after Balzania began requiring surface mine operators to pay reclamation costs, surface mines continued to produce coal at a lower total cost than underground mines.

E. As compared to twenty years ago, a greater percentage of the coal mined in Balzania today comes from surface mines

Answer 1

Answer:

C) Mine operators have generally ceased surface mining in the mountainous areas of Balzania because reclamation costs per ton of coal produced are particularly high for mines in such areas.

Explanation:

Reclamation costs refer to the costs of turning previously mined-out land into productive land. The cost of land reclamation has dropped significantly in Balzania and only two options can account for this lower cost:

1. Reclamation technology improved and therefore operating costs have decreased. But this option is false, as stated by the question.
2. Areas where reclamation costs are high have not been mined anymore. Since this is the only option left, we must assume it is true.

Answer 2

Answer:

A. Even after Balzania began requiring surface mine operators to pay reclamation costs, coal mines in Balzania continued to be less expensive to operate than coal mines in almost any other country.  

Explanation:

What is true about the information provided in the scenario in relation to accounting for the drop in reclamation costs described is that:  Even after Balzania began requiring surface mine operators to pay reclamation costs, coal mines in Balzania continued to be less expensive to operate than coal mines in almost any other country.  

It was stated in the scenario that, ''Twenty years ago, Balzania put in place regulations requiring operators of surface mines to pay for the reclamation of mined-out land, Yet, the average reclamation cost for a surface coal mine being reclaimed today is only four dollars per ton of coal that the mine produced, less than half what it cost to reclaim surface mines in the years immediately after the regulations took effect''

Hence, the cost in Balzania is lower than the costs elsewhere which implies that the products will be heaper in Balzania due to lower operating costs