How do natural resources affect the development of a country?

How do natural resources affect the development of a country?

Answer: Explanation: The quantity and availability of natural resources affect the rate of economic growth. The discovery of more natural resources, such as oil or mineral deposits, will give a boost to the economy by increasing a country’s production capacity.

What are resources are the resources of a country important?

Resources are important for the development of any country. For example, to generate energy, one need fossil fuels; and for industrial development, we require mineral resources. 6. Irrational consumption and over utilisation of natural resources has led to socio-economic and environmental problems.

What are the things that affect natural resources?

In this study, external factors affecting the sustainability of natural resource use are broadly categorized as modifiable and non-modifiable. Modifiable factors are those within the control of human society, such as poverty, political instability, economic instability and war.

How does scarcity affect the production of goods and services?

For consumers, scarcity affects what goods and services to buy based on their unlimited wants and society’s limited resources. For producers, scarcity affects which goods and services will be provided and how much, how these goods and services will be produced, and for whom will they be produced.

How does natural resources help the economy?

Natural resource is a key input in the production process that stimulates economic growth. Natural resources have limited direct economic use in satisfying human needs but transforming them into goods and services enhances their economic value to the society.

Are natural resources good or bad for development?

In short, resources have different effects depending on the institutional environment. If institutions are good enough resources have a positive effect on economic outcomes, if institutions are bad, so are resources for development. – such as gold or diamonds) are more “dangerous” for economic growth.

What are 20 natural resources?

Water.

Air.

Coal.

Oil.

Natural gas.

Phosphorus.

Bauxite.

Copper.

What are the major threats to natural resources?

Natural resources are not limitless, and the following consequences can arise from the careless and excessive consumption of these resources:

• Deforestation.
• Desertification.
• Extinction of species.
• Forced migration.
• Soil erosion.
• Oil depletion.
• Ozone depletion.
• Greenhouse gas increase.

What are the two main causes of over exploitation of natural resources?

Causes of Depletion of Natural Resources

• Overpopulation. The total global population is more than seven billion people.
• Poor Farming Practices.
• Logging.
• Overconsumption of Natural Resources.
• Pollution.
• Industrial and Technological Development.

What are 3 things a PPC shows?

The Production Possibilities Curve (PPC) is a model used to show the tradeoffs associated with allocating resources between the production of two goods. The PPC can be used to illustrate the concepts of scarcity, opportunity cost, efficiency, inefficiency, economic growth, and contractions.

What are the 3 types of scarcity?

Scarcity falls into three distinctive categories: demand-induced, supply-induced, and structural.

How does natural resources affect the economy of a country?

The natural availability of certain resources in a given region, makes it easier for the people to acquire and use them. Otherwise, a country, where a certain natural resource is not available, has to depend on other countries, in order to acquire it, owing to which the former has to invest a lot of monetary resources in the trade.

How are non industrialized countries affected by resource distribution?

Citizens of non-industrialized countries in Africa, Latin America, and Asia control and consume far fewer of the resources they need for survival and well-being. As a result, their lives are characterized by poverty and a low standard of living.

How does a rural household affect the environment?

Rural households often face difficult trade-offs in decision-making about natural resources, as they seek to balance the conflicting demands of managing the surrounding environment with the economic survival of the family. For example, privatization of land may reduce the amount of land that is available to a family for grazing.

How can the government influence the allocation of resources?

In a capitalist or free market economy, the price system largely decides how resources are allocated or distributed among consumers and used. However, in a capitalist or semi-capitalist society, the government has the means to direct the allocation of resources. It can, for example, offer tax breaks or subsidies…