depletion

Examples of depletion in the following topics:

• The Tragedy of the Commons

  • The population of tuna may be depleted if fishermen are allowed to catch as much as they want.
  • The tragedy of the commons is the depletion of a common good by individuals who are acting independently and rationally according to each one's self-interest.
  • However, when a lot of fishermen, all thinking this way, catch the fish, the total stock of fish may be depleted.
  • When the stock of fish is depleted, none of the fishermen are able to continue fishing, even though, in the long run, each fisherman would have preferred that the fish not be depleted.
  • The Food and Agriculture Association estimated 70% of the world's fish species are either fully exploited or depleted.

• Why Governments Intervene In Markets

  • Certain depletable goods, like public parks, aren't owned by an individual.
  • As a result, it is very easy for these assets to be depleted.
  • Governments intervene to ensure those resources are not depleted.

• Basic Economics of Natural Resources

  • Economists study extraction rates to make sure that resources are not depleted.
  • Depletion: the using up of natural resources, which is considered to be a global sustainable development issue.
  • Protection policies state the necessary actions internationally, nationally, and individually that must take place to control natural resource depletion that is a result of human activity.

• Arguments in Favor and Opposed to Economic Growth

  • Resource depletion: economic growth has the potential to deplete resources if science and technology do not produce viable substitutes or new resources.
  • Also, some arguments state that better technology and more efficient production will deplete resources quicker in the long-run even though advancements are perceived as positive right now.

• The Multiplier Effect

  • It has been argued that when a government relies heavily on fiscal multipliers, externalities such as environmental degradation, unsustainable resource depletion, and social consequences can be neglected.
  • Over reliance on fiscal multipliers can cause increased government spending on activities that create negative externalities (pollution, climate change, and resource depletion) instead of positive externalities (increased educational standards, social cohesion, public health, etc.).

• Types of Natural Resources

  • However, renewable resources do not have a rapid recovery rate and are susceptible to depletion if they are overused.
  • The discussions are centered around the issues of increased scarcity (resource depletion) and the exportation of natural resources as a basis for many economies (especially developed nations).
  • Natural resource economics aims to study resources in order to prevent depletion.

• National Income

  • A variety of measures of national income and output are used in economics to estimate total economic activity in a country or region, including gross domestic product (GDP), gross national product (GNP), net national income (NNI), and adjusted national income (NNI* adjusted for natural resource depletion).

• Externalities and Impacts on Resource Allocation

  • Examples of resource depletion include mining, petroleum extraction, fishing, forestry, and agriculture.

• Understanding Production Possibilities

  • Conversely, the PPF will shift inward if the labor force shrinks, the supply of raw materials is depleted, or a natural disaster decreases the stock of physical capital.

• Defining a Good

  • No one is excluded from fishing, but as people withdraw fish without limits being imposed, the stocks for later fishermen are depleted.