Question

Respond to the following in a minimum of 175 words:

• Discuss the following statement from Principles of Economics: “Because the environment is fragile and natural resources are finite, ultimately economic growth must come to an end.”
• Explain why, in any period, a country’s net capital inflows equal its trade deficit? Include examples.

Answer 1

1. I do not agree to the statement that "because the environment is fragile and natural resources are finite, ultimately economic growth must come to an end.”

Following are the reasons: Development is a continuous process, it does not stop. Along with development economic growth will happen continuously.Resources change their forms. Example- information technology revolution has changed the way jobs are created and may not stress environment much and growth still happens. New generation has different needs and different resources are needed. biomass may be replaced by electric or solar energy which is more environment friendly. Threat of global warming may be reduced by human efforts in future as it will threaten the basic survival.

It is true that resources are limited but there are renewable and non conventional resources. Resources which are given by nature in present forms truly have an end and we have to use them efficiently but new inventions will keep economic growth in some form or the other.