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Natural Resources in Economics

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Submitted By annemarie326
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3. Land, as a resource, can lead to economic growth in a number of ways. One being the search and discovery of natural resources by way of mining, digging, and drilling. When natural resources like oil are found, it attracts people. It does this because people are able to enter the oil industry. They make good wages and the local economy grows because of this job growth that is based on the discovery of this natural resource. The growth of the local economy leads to big investments in roads and airports. In turn, this leads to increased long-term productivity, not only in oil-related industries but also in the rest of the local economy. This kind of economic growth has a ripple effect on the rest of the local and larger economy. Not only do oil-related industries end up doing well, but the rest of the local economy picks up as well. These linkages help resource-rich areas remain productive even when local prices are higher or the economy goes up and down in other areas.

Land can also be used to promote economic growth by way of conservation. Outdoor recreation such as hunting, fishing, hiking, and wildlife watching is big business. It brings day and overnight visitors to an area and communities reap the economic benefits when visitors buy meals and snacks, stay overnight in hotels, buy specialized equipment, lease land, and pay for travel costs. When a community protects its natural resources, it protects the reason outdoor tourists come to the community. Wildlife is a multibillion dollar industry in this country. Hunting, fishing and wildlife related recreation generate billions of dollars every year to state economies. People spend money on equipment, lodging and food that go along with these activities – so other areas like retail that are indirectly related to land conservation activities benefit as well. River, lakes, creeks and ponds support many fishing

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