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Chapter 7: Problem 5

Differentiate between consumptive use and productive use. Give examples of each.

Short Answer

Expert verified
Consumptive use involves the use of resources such that they cannot be used again, like water used for fishing or trees used for firewood; while productive use involves the utilization of resources to generate other goods, like water for crop irrigation or electricity for goods production.

Step by step solution

01

Concept Understanding

Consumptive use and productive use are two different ways of utilizing resources. Consumptive use involves using resources in a way that they are not available for future use, whereas productive use means resources are used to generate other goods or services that can be beneficial in the future.
02

Examples of Consumptive Use

Examples of consumptive use can be water used for fishing which will not be returned to the source, or trees cut down for firewood. In both cases, the resource once consumed, cannot be used again.
03

Examples of Productive Use

For example, water used for irrigating crops or electricity used in factories for production of goods are considered productive use. In these cases, the resources are used to produce goods or services that can be beneficial over the long term.

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