Briefly discuss the case of ‘model with stock effects’ to illustrate the ‘economics of exhaustible resources’.

A renewnble resource is one that can regenerate itself and hence can supply productive inputs to an economic system indefinitely. Exlraustible resource, on the other   and. is the one with finite stock; once used up, the stock is gone. For example, coal is exhaustible because it takes millions of years for its formation. Even for the  renewable resource, depending on the rate at which it is harvested over time, the stock size changes. Obviously, natural resources share the two special characteristics of  capital stock. First one is 'durability', which implies that past decisions and present opportunities available are linked, i.e., past decision affects current stock and  present consumption affects future stock. Hence, the economic agent is confronted with ____ ________ _____ ______ _________ ____ __________ ________ ___ ______ _____.
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