Which of the Following Explanations About the Financial Impact of Biodiversity

question 36

Multiple Choice

Which of the following explanations about the financial impact of biodiversity on the economy is inaccurate?

• A) Protecting biodiversity prevents damage to farms due to the alleviation of flooding and siltation problems.
• B) Many communities are utilizing biodiversity to assist in wastewater treatment, both lowering costs and protecting the environment in the process.
• C) Loss of biodiversity in many areas of the world has led to increases in local and global average temperatures (global warming).
• D) Protecting biodiversity has decreased the amount of freshwater available to human populations because of the "sponge effect."
• E) Protecting biodiversity has led to new industries in ecotourism, adding billions of dollars to the economy annually.

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Definitions:

Common Stock Dividend

Payments made to shareholders from a company's earnings, reflecting a share of the profit allocated to each share of common stock.

Bonds Payable

Represents the amount owed to bondholders by the issuer, typically a long-term liability on the company’s balance sheet.

Long-term Debt

Borrowings or financial obligations that are due to be repaid more than one year from the balance sheet date.

Pension Outflow

A financial term referring to payments made to retired employees or beneficiaries from a pension fund.