Land is a resource that has largely been misused and taken for granted. Land is
ID: 106528 • Letter: L
Question
Land is a resource that has largely been misused and taken for granted. Land is continually improperly utilized. Obviously, the supply of land is fixed. Because of this fact, economists refer to land as producing economic rent. Under or over allocation of land for less than optimal economic uses has led to economic waste, social injustice, and political turmoil. Nonrenewable resources (such as oil, natural gas, and coal) or the uses or misuses of these resources has also led to economic waste, environmental damage, and social injustice. (A). Why is the proper use of land and nonrenewable resources important to the global economy? (B). What is the primary benefit of proper land and nonrenewable resource management and utilization to a business? (C). If the land and nonrenewable resource are mismanaged, what is the impact on the business?
Explanation / Answer
A- Scarcity of resources is the very reason where economics step in...maximizing utility from the available non-renewable resources as well as land (which is diminishing right from the beginning) is very much essential for overall economic growth of all the inter dependable countries cause land and non-renewable energies are depleting at the same rate worldwide. The use of fossil fuel resources, which are non-renewable, contributes to the rise of global warming due to the release of carbon dioxide (among other gases). Besides fossil fuels, there are other finite resources that are non-renewable and need to be conserved for various reasons.
B- Historically, it has been profitable to use up resources as fast as a possible - money now is worth a lot more than money later, and the government even gave tax credits for using up certain resources. There has been no economic incentive to pay much attention to the future.
On the other hand, you have the socially optimal resource usage pattern, which is almost never the same as the pattern optimal for the business. Natural resource management approaches can be categorized according to the kind and right of stakeholders, natural resources:
State property: Ownership and control over the use of resources is in hands of the state. Individuals or groups may be able to make use of the resources, but only at the permission of the state. Private property: Any property owned by a defined individual or corporate entity. Both the benefit and duties to the resources fall to the owner(s).
Common property: It is a private property of a group. The group may vary in size, nature and internal structure e.g. indigenous neighbors of village.
Non-property (open access): There is no definite owner of these properties. Each potential user has equal ability to use it as they wish. These areas are the most exploited. It is said that "Everybody's property is nobody's property".
Hybrid: Many ownership regimes governing natural resources will contain parts of more than one of the regimes described above, so natural resource managers need to consider the impact of hybrid regimes. The major effect of land use on land cover since 1750 has been deforestation of temperate regions. More recent significant effects of land use include urban sprawl, soil erosion, soil degradation, salinization, and desertification Land-use change, together with use of fossil fuels, are the major anthropogenic sources of carbon dioxide, a dominant greenhouse gas
C- In general, businesses need to manage all of their factors of production in a good way if they are to have the lowest possible costs and the highest possible productivity. For a business, mismanaging these sorts of resources would not have an impact that would be much different than the impact of mismanaging a resource like labor or capital.
(1) shortages in the “sources” or “taps” of raw materials/natural resources, and thus a problem of depletion,
(2) as a lack of sufficient “sinks,” to absorb wastes from industrial pollution, which “overflow” and cause harm to the environment
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