Question

Describe the 4 economic resource categories and how they relate to the scarcity problem.

Answer 1

The four Economic Resource are

Land-the all the resources by like, soil, water, air, animal etc which freely available consider as Land and the word land has the broader meaning.

Labour- those services rendered by the people in the production for monetary rewards is known as labor.

Capital- tangible and non-tangible goods assist used in the production process is known as capital.

Organizations-above mentioned factors are accumulated for the production of the goods is known as the organization.

The peculiar features of the economic resource are following.

• The economic resource is scarce in nature over uses of the resource resources exhausted.
• All factors not found in the all the region example labor is the aboundant factor in China and India whereas USA and UK scarce factor.
• The increase in the productivity of resources the supply of the economic resource increase over the period.

Thus, these feature of the factors production related to the scarcity problem, because human wants are unlimited and these resources are limited. Thus optimal utilization of these resources is the fundamental objectives of any economy.