Definition
Natural resources are materials or substances that occur in nature and can be exploited for economic gain. These resources include minerals, forests, water, and fertile land. They play a crucial role in supporting life and driving economic activities across various sectors, such as energy, agriculture, and manufacturing.
Examples
- Coal: A fossil fuel used for electricity generation and industrial processes.
- Oil: A critical energy source used in transportation, heating, and the production of various goods.
- Wood: Used in construction, furniture making, and as a source of fuel.
- Water Power (Hydroelectricity): Generated by harnessing the energy of flowing water.
- Arable Land: Land suitable for growing crops.
Frequently Asked Questions
What are renewable and nonrenewable natural resources?
- Renewable resources are those that can be replenished naturally over time, such as solar energy, wind energy, and biomass. Nonrenewable resources are finite and cannot be replenished within a human timescale, such as oil, coal, and natural gas.
How does depletion affect natural resources?
- Depletion refers to the gradual use of natural resources, reducing their available quantity. This can occur through activities like mining, deforestation, and overfishing. Proper management and conservation strategies are essential to mitigate depletion.
Are natural resources eligible for tax deductions?
- Yes, certain natural resources may be subject to depletion tax and accounting deductions. This allows businesses that exploit these resources to account for the reduction in resource value over time as a tax-deductible expense.
How are water resources utilized in industries?
- Water resources are utilized in various industries for processes like cooling, cleaning, manufacturing products, and generating hydroelectric power. Ensuring sustainable water management is crucial to avoid depletion and contamination.
What is the role of arable land in agriculture?
- Arable land is vital for agriculture as it provides the soil needed to grow crops. The quality and availability of arable land directly impact food production and security.
Related Terms
- Depletion: The reduction in the quantity of a natural resource as a result of extraction and use.
- Depletion Tax: A tax deduction that accounts for the decreasing value of a natural resource over time.
- Renewable Resources: Resources that can be replenished naturally, such as solar energy and wind energy.
- Nonrenewable Resources: Resources that cannot be replenished within a human timescale, such as fossil fuels.
- Sustainable Management: Practices aimed at using resources in a way that meets current needs without compromising future generations’ ability to meet their needs.
Online References
- U.S. Geological Survey (USGS)
- World Bank - Natural Resources and their Management
- National Renewable Energy Laboratory (NREL)
- Food and Agriculture Organization (FAO) of the United Nations
Suggested Books for Further Studies
- “Natural Resource Economics: An Introduction” by Barry C. Field
- “Managing Natural Resources for Development in Africa: A Resource Book” edited by Washington O. Ochola, Pascal C. Sanginga, and Isaac Bekalo
- “The Economics of Natural Resource Use” by John M. Hartwick and Nancy D. Olewiler
- “Environmental and Natural Resource Economics” by Tom Tietenberg and Lynne Lewis
- “Natural Resource Conservation: Management for a Sustainable Future” by Daniel D. Chiras and John P. Reganold
Fundamentals of Natural Resources: Economics and Environmental Science Basics Quiz
### What is a nonrenewable natural resource?
- [x] A resource that cannot be replenished within a human timescale.
- [ ] A resource that is always abundant.
- [ ] A resource that can be regenerated every year.
- [ ] A resource unaffected by commercial use.
> **Explanation:** Nonrenewable resources are finite and cannot be replenished quickly enough to match human usage, examples include fossil fuels like coal and oil.
### Which of the following is an example of a renewable resource?
- [ ] Oil
- [ ] Coal
- [x] Solar energy
- [ ] Natural gas
> **Explanation:** Solar energy is a renewable resource because it can be continuously harnessed from the sun without depletion.
### What does the depletion tax refer to?
- [x] A tax deduction that accounts for the reduction in quantity of a natural resource.
- [ ] A tax increase due to resource shortage.
- [ ] A penalty for using natural resources.
- [ ] A tax on renewable resource production.
> **Explanation:** The depletion tax is a deduction that allows businesses to account for the decreased value of natural resources over time due to extraction and use.
### Why is arable land important?
- [ ] For energy production.
- [ ] For construction purposes.
- [x] For growing crops.
- [ ] For mining activities.
> **Explanation:** Arable land is crucial for agriculture because it provides the soil necessary for crop cultivation, impacting food production and security.
### What is the primary use of coal?
- [ ] As a construction material.
- [x] For electricity generation and industrial processes.
- [ ] For drinking water purification.
- [ ] For growing crops.
> **Explanation:** Coal is primarily used for generating electricity and in various industrial processes due to its high energy content.
### What is sustainable management of natural resources?
- [ ] Using resources to their maximum potential immediately.
- [x] Utilizing resources in a way that meets current needs without compromising future generations' ability to meet their needs.
- [ ] Extracting as much resource as possible before it depletes.
- [ ] Limiting the use of all resources regardless of necessity.
> **Explanation:** Sustainable management aims to balance current use with future availability, ensuring that resources are not depleted or degraded.
### Which organization is responsible for the study and management of natural resources in the United States?
- [x] U.S. Geological Survey (USGS)
- [ ] Federal Bureau of Investigation (FBI)
- [ ] National Aeronautics and Space Administration (NASA)
- [ ] Centers for Disease Control and Prevention (CDC)
> **Explanation:** The U.S. Geological Survey (USGS) is tasked with studying and managing the natural resources of the United States.
### How does hydroelectric power generate electricity?
- [ ] By burning coal.
- [ ] By using solar panels.
- [ ] By utilizing wind turbines.
- [x] By harnessing the energy of flowing or falling water.
> **Explanation:** Hydroelectric power plants generate electricity by capturing the energy from flowing or falling water and converting it into electrical energy.
### What is a key characteristic of wood as a natural resource?
- [ ] Unlimited and non-depletable.
- [ ] Only used for making paper.
- [x] Renewable but needs sustainable management.
- [ ] Always found near water bodies.
> **Explanation:** Wood is a renewable resource, but it requires sustainable management practices to avoid deforestation and ensure a continuous supply.
### In what way does sustainable water management benefit industries?
- [ ] By reducing taxes.
- [ ] By eliminating water-related regulations.
- [x] By ensuring a reliable supply of water for industrial processes without depleting natural resources.
- [ ] By only using water for drinking purposes.
> **Explanation:** Sustainable water management ensures that industries have a reliable and continuous supply of water for their processes without compromising the availability of water resources for future usage.
