(a) What are natural resources? (b) Describe any four roles natural resources play in economic...
(a) What are natural resources?
(b) Describe any four roles natural resources play in economic development.
Explanation
(a) Natural resources are the materials nature provides and are necessary for the production of human wants. They are usually associated with land. Examples are the minerals in the ground and vegetation.
(b) Roles of natural resources are:
(i) Natural resources contribute to economic development by providing production input. (ii) Export of natural resources such as crude oil, groundnut, cocoa, diamonds contribute to foreign exchange earnings.
(iii) Investment in the exploitation of natural resources contributes to the growth of capital stock of the economy.
(iv) The exploitation of natural resources creates jobs.
(v) The returns from the exploitation of natural resources generate a sizeable income for the economy, e.g. royalties.
(vi) The natural resources promote the cultivation of crops to feed the people.
(vii) It creates the environment for the development of the secondary and tertiary sectors of the economy, e.g. manufacturing and tourism.