Question

The primary focus of natural resource economics is to develop policies for harvesting or extracting natural resources that

Multiple Choice

• maximize the net benefits from doing so.

• maximize the positive externalities of doing so.

• minimize the negative externalities of doing so.

• minimize the net costs from doing so.

Answer 1

• The primary focus of natural resource economics is to develop policies for harvesting or extracting natural resources that maximize the net benefits from doing so.
• Natural resource economics aims at managing the allocation of natural resources so as to make it sustainable for the use of future generations.
• The main goal of natural resource economics is to promote awareness and methods to encourage sustainable use of natural resources.
• Natural resources include plants, animals, soils, fossil fuels, minerals, etc which comes under the category of renewable, non-renewable, organic, inorganic, metallic, non-metallic, etc.
• Due to the fact that major amount of natural resources are exhaustible, efficient management of such natural resources is the need of the hour, so the natural resource economics focuses on the ways and means to prevent the natural resources from being depleted.
• Use of natural resources also have direct effect on the economy as although its use increases the productivity but it also paves the way for its depletion.
• Natural resource economics develop the policies to extract the natural resources in order to make maximum benefit out of it by imposing taxes on its use and by monitoring the use and level of natural resources.