Economic Resources and the Economic Problem

What are Economic Resources?

Economics resources used in the production of goods and servicesEconomic resources are inputs into the production process for an economy.

Economists think deeper than accountants. Accountants analyse and report things that can be measured in number form (quantified).

In contrast, economists look at all the items and conditions required to produce a product. So to grow coffee beans, a producer needs a warm climate and a suitable geography. Economists would say these resources are of the land category.

The types of resources in economic language are grouped into land, labour and capital.

Economics is essentially a study of scarcity and how to make ‘best’ choices regarding the use of scarce resources. All resources are finite (limited) and all resources have competing uses. So economics is about making the best choices for the use of scarce resources to optimise the benefits to society. This is called the Economic Problem.

Now learn more with these free study resources and access to low cost business tutorials.

17

Oct'18

Introductory Microeconomics Questions

These introductory microeconomics questions and answers will help you with your accounting study so you succeed. Move through the microeconomics questions and answers in order, so you go through the important introductory concepts in sequence. Take advantage of the links to the low cost tutorial topics with videos and quizzes so …

Read More

17

Oct'18

What are Resources in Economics

What are Resources in Economics? Resources in economics includes the inputs into the production process. Economists think much deeper than accountants. Accountants analyse and report things that are measured in number form or quantified. Economists consider at all items and conditions that are required to produce a product. For example, to grow …

Read More

19

Mar'18

What is Demand and Supply?

What is Demand and Supply? Demand and supply is a fundamental concept in economics. In a market, the forces of demand and supply interact to create the ‘price mechanism‘. This is the way a market economy works. Demand comes from the buying (consumer) side of a market, whilst supply is …

Read More