Final answer:
Linear and cyclic economies differ in their approach to resource management, with the linear economy based on a 'take-make-dispose' model leading to resource depletion, and the cyclic or circular economy focusing on resource regeneration through recycling, reusing, and reducing waste.
Step-by-step explanation:
Linear and cyclic economies are two different economic models that determine how resources are used and managed. The linear economy model is based on a 'take-make-dispose' approach where resources are extracted, used to make products, and then disposed of as waste after their use. This model does not account for the long-term availability of resources and is not sustainable over time due to the continual depletion of resources and the environmental impact of waste.
On the other hand, a cyclic economy, often referred to as a circular economy, is designed to be regenerative. It minimizes waste through the continuous use of resources. The cyclic economy implements strategies such as recycling, reusing, repairing, and refurbishing with the goal of creating a closed-loop system where products and resources are used for as long as possible. Unlike the linear model, the circular model promotes economies of scale, with the incorporation of fiscal policy and other economic incentives to sustain the cycle.
The primary differences between these models are their approach to resource management and environmental impact. The linear model leads to resource depletion and increased waste, while the cyclic economy aims to reduce waste, limit environmental impact, and maintain the value of resources within the economy as reflected in circular flow diagrams.