Answer to Question #260697 in Macroeconomics for Soma

Question

Today the world population is almost 8 billion about 4 times of what it was a century ago. At the same time many people are enjoying a much higher standard of living than what did their grandparents. A perennial debate concerns whether this growth in population and standard of living can continue in the future.

Many commentators have argued that natural resources will eventually limit how much the world economies can grow. At first this argument might seem hard to ignore. If the world had a fixed supply of non-renewable natural resources, how can production, population and standard of living continue to grow over time. Won’t supplies of oil and minerals start to run out? When shortages start to occur, wouldn't they limit economic growth and force standards of living to also fall?

Most economists argue that technological advances often yields ways to avoid these limits. Discuss some of these ways.

What evidence in the market indicates that natural resources are not limiting economic growth?

Answer 1

Through technological advances, some of the security measures are installed to control fraud. For instance, cyber security measures have been installed to safeguard many online business operations that may be tampered.

Considering timber products, it is evident that natural resources do not limit economic growth. This is because the related products help in handling other issues, which promote and create revenue for the economy.