1. Resources & Their Significance
Francisci WG.7

2. What is a Natural Resource?
Natural Resource: Any type of resource that occurs naturally on earth.
A natural substance is called a resource if and when it becomes useful to humans.

3. Examples of Natural Resources:
Renewable Resources:
Resources that can be replenished naturally
A renewable resource can be replaced in our lifetime
Examples: Soil, water, forests (trees) and wind
Nonrenewable Resources:
Resources that can not be replaced.
Once it is used, it is gone forever
Examples: Metals such as gold, iron, copper or fossil fuels such as oil, coal or natural gas.

4. What is a Human Resource?
Human Resource: A person providing labor or a service and includes his/her skills and/or abilities.

5. Examples of Human Resources:
Level of Education: Number of years in schooling or training – often the higher the level of education, the higher the wages
Skilled & Unskilled Laborers:
- Skilled Laborer: Training to acquire a skill; higher wages
- Unskilled Laborer: Lack of training; lower wages
Entrepreneurial & Managerial Abilities:
- Entrepreneur: Skills to have one’s own business
- Managerial: Skills in managing other workers.

6. What is a Capital Resource?
Capital Resource: Generally accepted as any asset used to produce a good or service.
Examples of Capital Resources:
1. Money – to invest in the construction of new businesses.
2. Infrastructure: Road systems, health services, energy production, waste disposal, airport, utilities, food distribution, water treatment
3. Equipment: Tools, machines and technologies (computers)

7. What is an Energy Resource?
Energy Resource: Basically any potential source of energy

8. Examples of Energy Resources:
Wood: Burning of wood has led to deforestation; Used as an energy source in developing countries
Solar & Wind: Type of clean energy production; Can be very expensive to generate; land can be negatively impacted (aesthetics)

9. Examples of Energy Resources:
Oil (Petroleum): Vital to transportation and important to developed countries; Causes acid rain
Nuclear Energy: Creates dangerous waste; If wastes are not contained, surrounding soil and air may become contaminated
Coal: Decreased burning of coal in developed countries; Used as an energy source in developing countries

10. Levels of Economic Activity:

11. Primary Level: First, basic step of economics
Deals directly with natural resources
Involves gathering, collecting, drilling for resources
Examples, Fishing, farming forestry, mining
Main economic activity in developing countries

12. Secondary Level: Middle step of economic process
Manufacturing and Processing Steps
Taking resources and converting them into products
Examples: Steel mills, automobile assembly, sawmills
Developing countries have little activity at this level; Developed countries have many secondary activities

13. Tertiary Level: Last step of economic process
Service Industry: Process of getting goods and services to the consumer
Examples: Transportation,
retail trade, informational technology services
(The more developed the country, the more tertiary activities exist)