The following text discusses ecological economics.
Standard economics treats environmental degradation as an "externality"—a cost borne by society rather than producers. Carbon pricing attempts to "internalize" these costs, making polluters pay for environmental damage. However, valuing ecosystem services in monetary terms proves conceptually and practically challenging. How does one price the loss of biodiversity or the cultural significance of pristine wilderness?
Which choice best describes the function of the last sentence?
It provides specific examples of successful carbon pricing programs.
It highlights conceptual difficulties through rhetorical questions.
It argues that carbon pricing is completely unworkable.
It introduces new economic terminology.
Correct Answer: B
Choice B is the best answer. The rhetorical questions about pricing biodiversity and wilderness highlight the conceptual difficulties mentioned in the previous sentence.
- Evidence: The previous sentence mentions "conceptually and practically challenging." The last sentence asks: "How does one price the loss of biodiversity...?"
- Reasoning: The questions are examples of why it is challenging—they show the difficulty of applying the economic logic.
- Conclusion: The function is to highlight difficulties.
💡 Strategy: Rhetorical questions usually highlight a problem or difficulty.
Choice A is incorrect because no programs are cited. Choice C is incorrect because difficulty isn't impossibility. Choice D is incorrect because new terms aren't introduced.