ICAEW SE · Chapter 2 · Question 5 of 13
Which of the following best describes economic sustainability?
Test yourself: pick an answer
Reveal answer & explanation
Correct answer: B) The ability of an economy or organisation to support long-term economic activity and wellbeing without causing damage to the environment or society that undermines that activity
Explanation
Economic sustainability is about maintaining economic activity and prosperity over the long term, in a way that does not deplete the environmental and social resources on which the economy depends. Short-term profit maximisation can undermine long-term viability. Avoiding any annual loss or minimising prices are not definitions of economic sustainability.
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