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. How would an economist respond to this report?
A)An economist would agree with the report, and would point to rising natural resource prices as evidence.
B)An economist would agree with the report, but wouldn't think it was important because growth will not slow down for several centuries.
C)An economist would disagree with the report, in part because it ignores the mitigating effects of technological change.
D)An economist would disagree with the report because labour and capital are the primary determinants of growth, and since they are plentiful, growth will not slow down.

Question

Quizplus · Accepted Answer

An economist would likely disagree with the report because it fails to take technological advancements into account, which can improve efficiency and increase the productivity of natural resources. Additionally, economic growth is driven by labor and capital, so as long as they are available, growth will continue. However, economists would agree that sustainable use of resources is important for long-term well-being.

A Leading Environmental Group Recently Published a Report Contending That