Resources, scarcity, and their impact on choice

• To satisfy our needs and wants, producers use resources to manafacture the goods and services that we desire.
• The four types of resources are:

  Land: natural resources such as forests, coal and soil

  Labour: Physical and mental effort of people who are working

  Capital: goods used to make other goods e.g. a tractor is used to produce crops

  Enterprise: this is the ability to combine the resources of land, labour and capital as to earn a profit
• All of the resources ware limited or scarce. At times, some are over utilised and become even more limited. Producers have to constantly make decisions in order to provide consumers with the goods and services they desire to satisfy their needs and wants