The ancient rainforests of Queensland, Australia, are under threat from agricultural expansion as more land is cleared for cattle ranching. Environmentalists estimate that by 2045, an additional 15% of the native forest could be lost.
From the passage above, it can be inferred that:
the opportunity cost of clearing forest land is zero.
the natural environment is an economic resource.
forest land is not an economic resource because it is naturally occurring.
the private cost of agricultural expansion is greater than its social cost.
