1. Explain the difference between a “reserve” and a “resource”. What factors influence estimates of reserves and resources for commodities such as minerals or fossil fuels?
Resources and reserves are similar in that the both benefit humanity. Resources are materials that can be used to satisfy human needs, or used as support. Reserves on the other hand are known deposits with the ability to extract the available material economically; the size of these reserves is not always known or defined. Resources could be possible reserves but they are not exactly economically viable. When estimating the influence of reserves and resources for commodities some technological, economical, environmental and political factors must be taken into consideration. In technology for example extraction methods, development, processing, shipping and distribution are some main areas to pay attention too. These technological impacts can affect the cost and the feasibility of recovery, this referring to any externalities, costs aside from the established price for the commodity. Linking to this we see the economical factors, which include commodity price, supply and demand, cartel, and price controls. Also any changes in price, regulations, or politics may inﬂuence resource recovery since the political and human factors involved are government/political stability; crime control; industrial nationalization; perception and cultural value.
2. As an example of the complex interactions of resource usage, please describe the involvement of the varied types of mineral resources in the preparation of a loaf of bread.
The involvement of varied mineral resources in the preparation of a loaf of bread consists of the technology and tools used in the process. In order to prepare the bread in a modern setting, whether at home or in a bakery an oven or fire pit are required. When using a conventional stove oven, the oven is made of certain materials that could handle the heat produced from...
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