Resources & Their Significance Francisci WG.7

What is a Natural Resource? Natural Resource: Any type of resource that occurs naturally on earth. A natural substance is called a resource if and when it becomes useful to humans.

Examples of Natural Resources: Renewable Resources: Resources that can be replenished naturally A renewable resource can be replaced in our lifetime Examples: Soil, water, forests (trees) and wind Nonrenewable Resources: Resources that can not be replaced. Once it is used, it is gone forever Examples: Metals such as gold, iron, copper or fossil fuels such as oil, coal or natural gas.

What is a Human Resource? Human Resource: A person providing labor or a service and includes his/her skills and/or abilities.

Examples of Human Resources: Level of Education: Number of years in schooling or training – often the higher the level of education, the higher the wages Skilled & Unskilled Laborers: - Skilled Laborer: Training to acquire a skill; higher wages - Unskilled Laborer: Lack of training; lower wages Entrepreneurial & Managerial Abilities: - Entrepreneur: Skills to have one’s own business - Managerial: Skills in managing other workers.

What is a Capital Resource? Capital Resource: Generally accepted as any asset used to produce a good or service. Examples of Capital Resources: 1. Money – to invest in the construction of new businesses. 2. Infrastructure: Road systems, health services, energy production, waste disposal, airport, utilities, food distribution, water treatment 3. Equipment: Tools, machines and technologies (computers)

What is an Energy Resource? Energy Resource: Basically any potential source of energy

Examples of Energy Resources: Wood: Burning of wood has led to deforestation; Used as an energy source in developing countries Solar & Wind: Type of clean energy production; Can be very expensive to generate; land can be negatively impacted (aesthetics)

Examples of Energy Resources: Oil (Petroleum): Vital to transportation and important to developed countries; Causes acid rain Nuclear Energy: Creates dangerous waste; If wastes are not contained, surrounding soil and air may become contaminated Coal: Decreased burning of coal in developed countries; Used as an energy source in developing countries

Levels of Economic Activity:

Primary Level: First, basic step of economics Deals directly with natural resources Involves gathering, collecting, drilling for resources Examples, Fishing, farming forestry, mining Main economic activity in developing countries

Secondary Level: Middle step of economic process Manufacturing and Processing Steps Taking resources and converting them into products Examples: Steel mills, automobile assembly, sawmills Developing countries have little activity at this level; Developed countries have many secondary activities

Tertiary Level: Last step of economic process Service Industry: Process of getting goods and services to the consumer Examples: Transportation, retail trade, informational technology services (The more developed the country, the more tertiary activities exist)