Why is the proper use of land and nonrenewable resources important to the global economy?
“Land” is one of the three main factors of production that allow things to be produced. The others are labor and capital. Most of what we call “land” (which includes all things that are not produced by people) is nonrenewable. Oil and natural gas, while abundant, are nonrenewable. The same goes for iron ore and other mineral deposits. This does not mean that we are running out of these things soon, but they are not renewable.
The proper use of these things, then, is very important for the global economy. We need to use these resources today because they are the backbone of our economy. If we do not use oil and iron and other such things, our economy screeches to a halt. On the other hand, we have to be wise and careful in our use of these resources. The reason for this is that we need to be able to have a strong economy into the future. We have to try not to waste these resources so that they can last as long as possible. While we consume them, we also need to be looking ahead to figure out how to have an economy when these things are less plentiful.