We are told that environmental economics aims to remedy the problem that people making economic decisions cannot readily compare environmental factors with other costs and benefits. To solve this problem, monetary values must be assigned to environmental factors. However, monetary values result from people comparing costs and benefits in order to arrive at economic decisions. The argument then concludes from this that environmental economics is, thus, hindered by what motivates it.
So let's think about the problem and its solution. We need to compare costs and benefits in order to arrive at economic decisions that will then result in monetary values. We must then assign these monetary values to environmental factors so that we can remedy the problem that people making economic decisions cannot readily compare environmental factors with other costs and benefits, which was what we needed to arrive at the economic decisions that resulted in the monetary values. Thus, the remedy for the problem is impossible because of the problem itself. To solve the problem that people cannot readily compare environmental factors with other costs and benefits, we must get people to compare costs and benefits. So, environmental economics is stymied by what motivates it.
Thus, if the considerations advanced in its support are true, the passage's conclusions (i.e. that the remedy and problem hinder one another) is supported strongly on the assumption that monetary values for environmental factors cannot be assigned, unless people make economic decisions about these factors, i.e. answer choice (A). Let's diagram this answer choice:
Monetary values for environmental factors cannot be assigned unless people make economic decisions about these factors.
MVEF ==> PMEDF
CONTRAPOSITIVE: If people do not make economic decisions about these factors, then monetary environmental factors cannot be assigned.
not PMEDF ==> not MVEF
The problem that environmental economics aims to remedy is that people do not make economic decisions about the environmental factors. Thus, according to the contrapositive of answer choice (A), the monetary factors cannot be assigned. However, according to the stimulus, the only way the problem (i.e. people making economic decisions cannot readily compare environmental factors) can be solved is for monetary factors to be assigned to environmental factors. Therefore, (A) is the correct answer.
Hope this helps! Please let us know if you have any other questions.
