Summary: of scarcity and the factors of production

Factors of Production (A.K.A. Economic Resources): Separated into 4 distinct groupsLabor - Human skills, effort, knowledge, talent (both physical & mental). Can be augmented by education and training (human capital) Land/Natural resources - e.g. land for crops, mineral deposits, oil/gas reserves, waterPhysical Capital - Manmade equipment (e.g. machinery, buildings, roads, vehicles, computers)Entrepreneurial Ability - Effort & know-how to put resources together in a ventureScarcity

The aforementioned factors of production are limited in supply. The following examples involve the production of a term paper.

Labor - Hrs. of research & writing are scarce–limited to # of hrs. in a dayLand/Natural resources - e.g. paper (trees); trees are limited and so is ability to accquire them (b/c of income)Physical Capital - e.g. computer, printer, desk, pens, workspaceEntrepreneurial Ability - Skill needed to compile research into academic work