
The reason why the real cost of gold is more costly than what most people pay for it. Give some examples of costs not accounted for.

Answer to Problem 1CR
Mining of gold is carried out using cyanide. It requires a huge workforce and money for the extraction of gold. Thus, the real cost of gold is more than that paid by people. In addition to this, cyanide also has harmful impacts on nature.
Explanation of Solution
The real cost of gold is less than that paid by most of the people. It is due to the fact that the mining of gold requires a lot of workforce and economy. Most of the gold mining operation is carried out by spraying cyanide salt on the pile of crushed rocks. This solution drains off the rock piles, and gold is left. The solution of cyanide is drained into the water resources, soils, and thereby harm the living organisms of the area. The gold mining industries had to manage the safety of environment also. It increases the cost of the extraction of gold. This is the reason due to which gold is sold at higher prices as compared to its real cost.
The cost that is not accounted includes water pollution in the pond, loss of plants and animals in the ponds, soil erosion, and soil pollution. Some forests are also cut down during the exploration of gold and its excavation. Therefore, the price of gold does not account for the harmful impact on the environment.
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Chapter 14 Solutions
EBK LIVING IN THE ENVIRONMENT
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