The Basics
Society’s material wants are unlimited. The economic resources which are the ultimate means of satisfying these wants are scarce in relation to the wants
- Economic resources are classified as land, capital ,labor, and management.
- The payments received by those who provide the economy with these four resources are rental income, interest income, wages, and profits, respectively.
- Because these resources are scarce (or limited), the output that the economy is able to produce is also limited.