Question

How are environment and economy interdependent?

Answer 1

No economy can grow without using resources. But when it overuses or misuses the scarce resources, it crosses the carrying capacity of the environment. It leads to environmental degradation and makes the development unsustainable. It has been clarified with the help of the following diagram.

Environment provides land, water, air, energy resources, coal, oil, forests, minerals and metals and so many other natural resources which are essential for the economic development of the economy.