What Is the Environmental Significance of the Process of "Consumption

question 19

Multiple Choice

What is the environmental significance of the process of "consumption"?

• A)Consumption can outstrip the natural resources available and lead to overexploitation of the environment.
• B)Extravagant consumption can create an environment of raising one's status among peers.
• C)The process of consumption is an economic act, providing the "demand" necessary for the "supply" of the environment.
• D)Consumption can generate economic growth that relies significantly on the importation of natural resources, which benefits the environments of less-developed countries.

---

Definitions:

Gold Reserves

The amount of gold held by a central bank or government to support the value of its currency and to settle debts or engage in trade.

Create Money

The process by which the central bank or financial institutions increase the money supply in the economy, typically through activities such as lending or purchasing government securities.

Demand Deposits

Bank account balances that can be withdrawn on demand with no prior notice, such as checking accounts, providing liquidity and flexibility for accountholders.

Inflation

The rate of growth in the average cost of goods and services, which lowers the purchasing capacity.