ECONOMICS (CBSE/UGC NET)

Detailed explanation-1: -1. All countries have limited productive resources-natural, human, and capital. Because human wants for these resources exceed their availability, we say that these resources are scarce.

Detailed explanation-2: -It’s time to wrap things up, but before we go, always remember that the four factors of production-land, labor, capital, and entrepreneurship-are scarce resources that form the building blocks of the economy.

Detailed explanation-3: -(used to create goods and services)-An entrepreneur is a person who combines the other factors of production – land, labor, and capital – to start and to run a business.

Detailed explanation-4: -Understanding productive resources, the resources required to produce goods and services that people want, is important to understanding the economic world around us. There are three kinds of productive resources: human, natural, and capital.

Detailed explanation-5: -Things that are scarce, like gold, diamonds, or certain kinds of knowledge, are more valuable for being scarce because sellers of these goods and services can set higher prices.