Question

WHAT ARE RESOURCES? FACTORS OF PRODUCTION? INPUTS? DEMONSTRATE THE SCARCITY, CHOICE AND OPPORTUNITY COST IS AT THE HEART OF ECONOMICS

Answer 1

Resources are a source of supply, support, or aid, especially one that can be readily drawn upon when needed.

Factors of production are inputs used to produce an output, or goods and services. They are resources a company requires to attempt to generate a profit by producing goods and services. Factors of production are divided into four categories: land, labor, capital and entrepreneurship

Economics is the study of how people use scarce resources to satisfy unlimited wants. At the core of economics is the idea that our world is a place plagued with scarcity that is, we do not have all the resources we want. As a result, we must make choices. When we make a choice, that choice necessarily means that we have to give up something. The something we give up is called opportunity cost. Economists define opportunity cost as the next best alternative or the highest valued alternative to the choice that was made. If we choose to produce a good using a resource, the opportunity cost of producing that good is the highest valued alternative use of that resource. The three are the core of capable decision-making.