If the resources are finite then how are economies growing?

Question

If the resources are finite then how are economies growing?

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Answer 1

Resources aren’t finite.

There are two main categories of resources. Natural resources and labor. Natural resources are things like lumber or iron ore. We can grow more trees and while it might seem like the amount of iron ore is finite, our ability to extract it can grow. So, we have more iron ore available to us each year.

The other important resource is labor. The more people there are in the world, the more labor hours are available. This leads to more goods and services being produced which grows the economy.