The Rising Costs of Scarce Natural Resources

The video discusses the historical and current economic trends of natural resources like lumber and oil. It highlights how certain types of lumber, such as redwoods, were once inexpensive but have become costly due to scarcity. Similarly, it explains that oil production is stabilizing and may decline, leading to increased costs unless new resources are found. The video emphasizes that when the cost of a natural resource becomes too high, its usage diminishes.

What was one reason for the increase in lumber prices over the past 100 to 200 years?

• Scarcity of certain types of lumber

• Increased demand for wooden furniture

• Government regulations on wood usage

• Advancements in construction technology

Why are redwoods from the Pacific Coast particularly expensive?

• They are used in luxury furniture

• They are resistant to pests

• They grow faster than other trees

• They are scarce

What is a current trend in oil production?

• It is becoming more environmentally friendly

• It is unaffected by technological advances

• It is leveling off and may decline

• It is rapidly increasing

What might happen if the cost of a natural resource becomes extremely high?

• Its quality will improve

• It will be used more widely

• It will not be widely used

• Its production will increase

What is a potential consequence of not finding new oil resources?

• Oil will become obsolete

• Oil costs will rise

• Oil will become more abundant

• Oil prices will decrease