Sure, but even labour can be rerouted into less efficient but still useful means.
For example, if the forklift operators in a warehouse don't have any product to move, then they can be redirected into doing inventory and cleaning, which helps them take care of future influx of work.
A smith with no orders for arms and armour can still beat swords into plowshares, which would contribute to the local economy. Or he could prepare more blanks and semifinished pieces in anticipation for future orders. Or go home and fix the roof for the wife (Reduce Unrest
)
In all cases, labor is redirected to less productive but still useful means. And we still haven't gotten into the issue of trade...
I think it's an interesting idea to debate, particularly since I think Resource is gimped enough by being non-portable (can't use Resource outside of the Province) vs. Gold.
__________________
"Hello, mother. I come bearing a gift. I'll give you a hint. It's in my diaper and it's not a toaster."
- Stewie Griffin
"The artifact which is the source of my power will not be kept on the Mountain of Despair beyond the River of Fire guarded by the Dragons of Eternity. It will be in my safe-deposit box. The same applies to the object which is my one weakness."
- The Top 100 Things I'd Do If I Ever Became An Evil Overlord
http://www.eviloverlord.com/lists/overlord.html
The Brain: Pinky, are you pondering what I'm pondering?
Pinky: I think so, Brain, but then it'd be Snow White and the Seven Samurai...
-Pinky and the Brain
http://www.lolthulhu.com/
-Props to S.R. Krol