ECONOMICS OF RESOURCES Flashcards
These are raw materials provided by
nature, like water, oil, coal, minerals, forests, and land. They can be renewable (such as solar energy, wind, and fish stocks) or non-renewable (such as fossil fuels and minerals).
natural resources
Labor and human capital are also
essential resources. Skilled labor and education enhance the value of human resources, allowing economies to
develop.
human resources
This includes machinery, infrastructure, and technology that help in the production of goods and services.
capital resources
one of the fundamental concepts in economics. Resources are inherently limited, meaning that there are not enough to meet the unlimited wants and needs of society.
scarcity
meets the needs of the present without
compromising the ability of future generations to meet their own needs.
sustainability
In a market system, resource allocation
is determined by supply and demand. Prices are signals that guide the efficient allocation of resources—when a resource is in short supply, its price rises, encouraging consumers to reduce demand and suppliers to increase supply.
market economy
In a command or planned economy,
the government controls the allocation of resources. This system aims to ensure equitable distribution but can sometimes lead to inefficiencies and misallocation.
planned economy
Most modern economies are mixed, with
both market-driven and government-regulated aspects. The government may intervene to regulate resource use,
protect the environment, or provide public goods.
mixed economy
deals with how economic activity impacts the environment and how environmental
policies can be designed to address the externalities (e.g., pollution) caused by resource extraction and use.
environmental economics
aims to make the polluter pay for the negative
environmental externalities they create.
carbon tax
which promotes reducing, reusing, and recycling materials, is gaining traction as a
way to reduce waste and make better use of limited resources.
circular economy
