A leading environmental group recently published a report contending that humans are running a "resource deficit" because we are using natural resources faster than they can be regenerated.The group claims that this means that economic growth will eventually stop,and will even be reversed.An economist would
A)agree with the report,and would point to rising natural resource prices as evidence.
B)agree with the report,but wouldn't think it was important because growth will not slow down for several centuries.
C)disagree with the report,in part because it ignores the mitigating effects of technological change.
D)disagree with the report because labor and capital are the primary determinants of growth,and since they are plentiful,growth will not slow down.

Question

Quizplus · Accepted Answer

Economists would likely disagree with the report in part because it ignores the impact of technological change on resource use. Technological advances have allowed for more efficient use of resources and the ability to develop substitutes for scarce resources. Additionally, economists may argue that labor and capital are the primary drivers of economic growth, rather than natural resources. However, they would also agree that natural resource prices tend to rise as they become scarce, which can have an impact on economic growth if they are essential inputs for production.

A Leading Environmental Group Recently Published a Report Contending That