Question

Which types of costs are associated with transactions that can result in damage to the environment, human health, and property?

Answer 1

Answer:

The costs associated with this type of transactions are the following:

1. Internal costs

2. Traditional market costs

3. External costs

4. Tangential costs

5. External costs

Explanation:

This is the economic value assigned to the negative effects of a productive activity for society (pollution, lost soil fertility, etc.).  For many years, the traditional economy has ignored both environmental and social costs. However, true economic integration must go hand in hand with the implementation of regulatory measures that do not restrict economic activity and contribute to sustainable development, which includes in all cases an environmental management of the resources where it is involved. citizens, not as a pressure group, but as participants in making decisions with environmental consequences.

It is precisely in this scheme where environmental economics arises as a discipline to seek or at least raise favorable paths that lead to optimization in the exploitation of natural resources, whose reserves are scarce.