What is economic resources?
- Economic resources are the things or services used to produce goods, which then can be used to satisfay human wants in economics.
- Economic resources can be defined by everything else as the stock of wealth available in society, in addition to being called the elements of production or inputs to the production process.
Note: Economic resources are often characterized by a relative scarcity "that is, the amount available is usually not sufficient to produce multiple and renewable human goods and services."
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| Definition Economic Resources |
Types of economic resources
Economic resources are divided into four elements, namely:
- Land component.
- Capital component.
- Labour component.
- Management and Entrepreneurs.
Economic Resources - Land
Land consists of an economy is natural resources.
Economic Resources - Capital
Capital is human made resources and consists of tools, equipment, machinery, building and transportation networks, which used in and facilitate the production of goods and services.
Note: Capital may be financial capital or physical capital.
Economic Resources - Labour
Labour consists of human beings. Labour resources can be measured in terms of the number of people in the workforce.
Economic Resources - Management Or Entrepreneurs
Entrepreneurs certain persons called Entrepreneurs, posses a particular role that can not perform by land and capital ( developing ideas and taking the risk business).
What is reason economists are interested in studying economic resources?
If we look at the importance of economic resources, we will find that there are several factors:
- Scarcity of resources and multiple needs.
- Contributing to economic development.
- Protect and conserve resources.
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