Question

please answer these questions related to Capital and the Resource curse (part of Economics of natural resources):

1) Why does natural capital generate rents?

2) What does it mean to say that Natural Resource economics is a kid of capital theory?

3) Summarize whether you think the concept of the "Resource Curse" is valid and how it applies.

4) Why does Natural Resource economics require "dynamic" analysis?

5) Find a book about Natural Resource economics, write the name of the book, the author, date and publisher, and briefly summarize a review of the book.

typo in q2.** 2) What does it mean to say that natural resource economics is a kind of capital theory?

Answer 1

I will answer only the Q1 as per HomeworkLib policy. Kindly accept HomeworkLib policy as this is the rule.

Natural capital refers to the natural resources of the world.It includes air , water ,soil , geology as well as all living organisms .Economists use the term "rent" as payment for using the resource . It may be land,sea , coast etc.Rent is payment made for the use of the "original and indestructible " powers of the soil. The coast and sea provide a wide variety of services which are important as they help in the production of goods like sea food.Again there is the use value of sea ,as sea is used for recreational purposes .Rent is considered as a return to the resource ,which is in fixed supply. Eg coastal areas are in fixed supply . So rent is applied to any resource supply that is fixed with respect to price.