Theory question 112
Economic Growth and Development(a) What are natural resources?
(b) Describe any four roles natural resources play in economic development.
Show the model answer
Model answer
(a) Natural resources are gifts of nature that can be used to produce goods and services, e.g. land, minerals, forests, water and fish.
(b) Any four: supply raw materials for industries; earn foreign exchange through exports; provide government revenue (royalties, rents, taxes); create employment; attract foreign investment; provide food; provide energy (oil, gas, water power); encourage development of infrastructure in their areas.
Explanation
Explain how each role leads to growth or higher living standards.