This building block is part of a six-block series from the SUSTAINICUM collection:
- From logistic growth to a turning point in global resource consumption- overview
- Logistic growth without time-delay
- Time-delayed logistic growth
- Optimal population
- Technological progress
- Turning point in global resource consumption
This building block presents the production function W=W(L,R). This function illustrates how welfare W is produced with the employment of labor L and natural resources R. The production function also shows how much welfare changes when the employment of labor L and resources R change. The building block shows the increase in demand for labor L that results when resources R become increasingly expensive under the appropriate conditions. The financial resources resulting from this increase in cost flow into making labor L less expensive. With the help of the production function it can be calculated to which degree this changes welfare W. Finally, the building block shows how resource exploitation can be reduced without a noticeable loss in welfare.
Suggested methods for applying this building block, one of the six-part series, in the classroom can be found in the overview building block: From logistic growth to resource turning point- Overview.
Building block materials: