Final answer:
When natural resources are not priced, they can be misused, overused, and inefficiently used, leading to environmental degradation and resource depletion.
Step-by-step explanation:
When natural resources are not priced, they are treated as free and can be misused, overused, misallocated, and inefficiently used. Without a price attached, there is no incentive for individuals or businesses to conserve or use the resources responsibly. Prolonged misuse of natural resources can lead to environmental degradation, depletion of resources, and negative impacts on ecosystems and biodiversity.
For example, if water resources are not priced, people may waste water by leaving faucets running or using excessive amounts for irrigation. Similarly, if forests are not-priced, deforestation may occur at unsustainable rates, causing loss of habitat and biodiversity.
Therefore, it is important to price environmental and natural resources appropriately to encourage responsible use, conservation, and sustainable management.
Without pricing, environmental and natural resources are likely to be misused and depleted rapidly because they would be treated as free, leading to misallocation and inefficient use.
When environmental and natural resources are not priced, they often become subject to misuse and overexploitation. If society fails to attach a price to these resources, they are often treated as if they are free. This can lead to their misallocation, inefficient use, and overuse. Instead of being preserved for long-term sustainability, the resources are likely to be depleted at a faster rate than they can be replenished. This is because there are no market signals—like prices—to inform consumers about scarcity and cost, leading to a lack of incentives for conservation. Thus, the true answer to the student’s question is b. They will be treated as free and get misused, overused, misallocated, and inefficiently used.