ECONOMICS
SCARCITY
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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The “gifts of nature” or natural resources not created by human effort.
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the tools, equipment, and factories used in production of goods and services
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people with all their efforts and abilities
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individuals who start a new business or bring a product to market.
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Detailed explanation-1: -Natural Resource-A natural resource is a gift of nature that is used to produce a good or service. Students often have difficulty differentiating a natural resource from a capital resource. You should consider a natural resource as a raw material that has not been processed or altered by humans.
Detailed explanation-2: -Among the 4 factors of production, land is a free gift of nature to human beings, its quantity supplied is unlimited and fixed.
Detailed explanation-3: -These resources are divided into four broad categories: natural (land), human (labor), capital and entrepreneurship. Natural resources are “gifts” of nature and include things like raw materials, water, wood, air, sunlight, soil, animals, etc.
Detailed explanation-4: -All natural resources either on the surface of the earth or below the surface of the earth or above the surface of the earth is Land. One uses the land to produces goods. It is the primary and natural factor of production. All gifts of nature such as rivers, oceans, land, climate, mountains, mines, forests etc.