Economists Have Been Comparing the Monetary Value of Intact Habitats

question 1

Multiple Choice

Economists have been comparing the monetary value of intact habitats with the value of using (destroying) those habitats (such as for logging or farming) .They find

• A)the immediate economic gain is worth it,such as in the shrimp farms in Thailand.
• B)the long-term problems are minimal,and usually economically minor,it is more of an aesthetic problem than a monetary one.
• C)in every case studied the intact habitat is more valuable than the destroyed one.
• D)clearing the forest for agriculture,as in Cameroon,provides jobs,housing,and long-term economic benefits.
• E)increased invasion in intact habitats renders it worthless within a few years.

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Definitions:

Efficiency Loss

The loss of economic efficiency that can occur when equilibrium for a good or a service is not achieved or is not achievable.

Deadweight Loss

Deadweight loss is an economic inefficiency resulting from a disparity between supply and demand, often caused by market interventions like taxes or price controls, resulting in potential benefits not realized by any party.

Tax Revenue

The total amount of money collected by the government from taxes, which is then used for public expenditures.