ECONOMICS (CBSE/UGC NET)

Detailed explanation-1: -The availability of a resource depends on how much of it there is, how much it costs to get, and where it is located. Politics plays an important role in resource availability. The world’s wealthiest people use most of the resources. The world’s poorest people use very few resources.

Detailed explanation-2: -An abundance of natural resources should accelerate economic development because it increases exports so that more capital goods can be imported to build up the economy, and also because the natural resource rents (returns in excess of those required by an efficient producer) can be used to boost capital investment.

Detailed explanation-3: -Examples of extractive industries are hunting, trapping, mining, oil and gas drilling, and forestry.

Detailed explanation-4: -An abundance of raw materials was one reason for the nation’s industrial success. The United States had vast natural resources, including timber, coal, iron, and copper. This meant that American companies could obtain resources cheaply and did not have to import them from other countries.