Which of these choices is considered an environmental cost? A. Net profit B. Processing expenses C. Resource depletion D. Product price
The Correct Answer and Explanation is:
The correct answer is C. Resource depletion.
Explanation:
Environmental costs refer to the negative impacts of business activities on the environment. These costs can arise from the use of natural resources, pollution, and degradation of ecosystems. Resource depletion is a direct environmental cost because it involves the overuse or exhaustion of natural resources, such as water, minerals, fossil fuels, or forests. When these resources are consumed faster than they can be replenished, it leads to a decrease in their availability for future generations, which has long-term ecological consequences.
In contrast, other options are not considered environmental costs. Net profit refers to the financial gain a company makes after subtracting expenses from revenue. This is a business financial metric, not an environmental consideration. Processing expenses are the costs involved in manufacturing or producing goods, which may include labor, materials, or energy costs. While some of these expenses may have environmental implications (for example, energy consumption or waste production), processing expenses themselves are not categorized as environmental costs unless they specifically relate to environmental damage or resource usage. Product price is the cost at which a good is sold to the consumer and does not directly address the environmental impact of the product’s production, use, or disposal.
Resource depletion has broad implications, not only for the economy but also for ecosystems and human health. As resources become scarcer, the environmental costs of extracting or utilizing them increase, leading to a need for more sustainable practices. The depletion of resources such as freshwater, for instance, can lead to water scarcity, which impacts agriculture, industry, and communities. Similarly, the overuse of fossil fuels contributes to climate change by increasing greenhouse gas emissions.
In summary, resource depletion is an environmental cost because it directly impacts the environment by reducing the availability of critical resources necessary for life and industry.
