Economics of Natural Resources - Desklib

Running head: ECONOMICS OF NATURAL RESOURCES
Economics of Natural Resources
Name of the Student
Name of the University
Author Note

1ECONOMICS OF NATURAL RESOURCES
Table of Contents
Answer 1..........................................................................................................................................3
Answer 2:.........................................................................................................................................3
Answer 3:.........................................................................................................................................3
Answer 4:.........................................................................................................................................4
Answer 5:.........................................................................................................................................4
Answer 6..........................................................................................................................................5
Answer a......................................................................................................................................5
Answer b......................................................................................................................................5
Answer c......................................................................................................................................6
Answer d......................................................................................................................................6
Answer 7:.........................................................................................................................................6
Answer 8..........................................................................................................................................7
Answer a......................................................................................................................................7
Answer b......................................................................................................................................7
Answer 9..........................................................................................................................................8
Answer a......................................................................................................................................8
Answer b......................................................................................................................................8
Answer c......................................................................................................................................9
Answer d....................................................................................................................................10
Answer e....................................................................................................................................10

2ECONOMICS OF NATURAL RESOURCES
Answer 1
Natural resources are of two types- renewable resources and non-renewable resources.
The non-renewable natural resources are those available in limited supply and cannot be renewed
or takes very long time to replenish. Examples of non-renewable resources include coal, oil,
natural gas and nuclear. Renewable resources on the other hand are those available with
unlimited supply. For example, solar energy, water, wind, biomass and other.
Answer 2:
In terms of economics, resources are the key factors, which are required to produce any
good or service. These resources include natural resources also. The natural resources, which are
used in the production of goods and services, are mostly non-renewable. While the classical
economists have the belief that the usage of the limited natural resources are making them
increasingly scare with time, the neo-classical economists are optimistic regarding their
availability. According to them, when a resource gets scarce, its price increases, which leads to
substitution of the same with alternative resources or implementation of innovative technologies
for optimum usage of the same. For example, coal being a non-renewable energy resource, the
contemporary world is moving towards substitution of coal with other renewable man-made
energy resources.
Answer 3:
Deforestation is one of the environmental issues of concern as over the years this
phenomenon has increased considerably due to increase in the population and the following
economic and industrial activities. Deforestation, though is an environmental evil, often becomes