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How do resources affect the economy?
a one-resource economy is an economy that relies on one thing
That's like asking how can the presence of lungs and other vital organs affect life if their was no air being breathed by a human. The organs, like resources, are nice, but do… nothing without air or an economic system to power them. Natural Resources are neither sufficient or necessary for economic development in any one particular country. Economic systems explain why resource rich Nigeria is dirt poor, while resource scarce nations like Japan are filthy rich. However, if all nations had the same economic system, then the nation with natural resources would of course be richer in real terms. The textbook explanation is that resource presence increase a nation's Long Run Supply, or Production Possibilities. However, there is no guarantee that the nation will actually put these resources to use, and fulfill their potential economic development.
when total resources in an economy is not equally allocated among four factors of production i.e land, labor, capital and organization then allocation of resources in an econo…my considered to be inefficient.
How can the presence or absence of natural resources and arable land affect a nations economy regardless of the type of economic system?
If a country has few resources and little land for crops, it may not be able to produce enough food and products for the people.
Resources, in a free market, are allocated by buyers and sellers. Buyers determine the quantity determined by their willingness and ability to pay for the products. Prices are… determined by supply and demand.
Countries trade for raw materials that they need for energy and to manufacture products. Therefore, the more natural resources a nation has, the more it will prosper. Natura…l resources are very important. countries all over the world use natural resources for practically everything. buildings, cars,and everything that is man made.
Earlier in it's history, Canada depended on it's natural resources. Today the economy is more diverse. Here is a list of useful natural resources that contributed to … Canada's economy: Fishing, agriculture, and forestry have declined over the years. In 1925-29, it was 18%. 1950-54 it was 12%. And now, it is 2%. Services are part of economy today, with a total of 60%. Manufacturing has a percentage of 15% And other things are marked as 16%. These statistics are based as of 2007. (And if this is for some sort of homework, just put down 'Service, agriculture, fishing, forestry, and manufacturing are some economy today. These natural resources contribute to Canada's economy hugely.') I hope this helped!
It is allocated according the market equilibrium which is subjected to the changing market demand and market supply.
the farmlands of the midwestern United States and the Praires in the central provinces of Canada have rich soil
Lever exports has a direct effect comercai balance and also balance the public accounts repando to divide the state
Entrepreneurial resources can affect the economy of a country if these resources are utilized to supplement companies or in fact create new companies. If successful then it of…ten results in a higher employment rate for that country. It may also increase the tax base & revenues of local, state, and federal governments. If these resources result in failure then the upward boast from their beginnings is deflated. If the resources are not utilized at all, then the economy generally speaking sees no affect or return on any profits that they might have created.
in a pure one only private firms and individuals but in reallity both govt and private
The distribution of economic power between nations determines where materials are needed most. Because, at any point in time, there are finite amounts of natural resources…, these resources are distributed where they are needed in the quantities they are needed.