Since certain outputs are desired, they command a price and so, therefore, do economic resources. As these names imply, economic resources are required to produce the outputs desired by society. Economic resources are also called factors of production or inputs in the productive process.
#Unfulfilled notion definition free
If all our wants were completely fulfilled, nothing would have a price-why pay for anything if you’ve got everything already? And if there were no unfulfilled wants there would be no economic resources-why pay for an input when you’ve got all the outputs you could ever need? The fact that totally free goods and services do not exist provides support for the notion that total fulfillment of our wants is impossible.Ģ-4 What are economic resources? What are the major functions of the entrepreneur?Įconomic resources are of four main types: labor, land (natural resources), real capital (machines, factories, buildings, etc.,) and entrepreneurs. We cannot absolutely solve all of our economic problems that is, satisfy all of everyone’s wants and needs. If resources were abundant without limit, then we would not have a scarcity of the products they produce.Įconomic problems are problems of relative scarcity-wants exceed resources in the relative sense. Goods and services are the product of resources. Therefore, even your desire for coffee is insatiable over time. It may be that you get all the coffee you want on a particular morning, but will that satisfy your wants forever? Not if you want coffee in the future. I get all the coffee I want to drink every morning at breakfast." Explain: "Goods and services are scarce because resources are scarce." Analyze: "It is the nature of all economic problems that absolute solutions are denied us." This example helps support the saying, "There ain’t no such thing as a free lunch!"Ģ-3Ĝritically analyze: "Wants aren’t insatiable.
It may be true that local property taxes that fund the junior high school are not being used for the lunches, but the federal government’s funds do come from taxpayers across the country, including those in the town with the junior high. Government subsidies come from government revenues and taxpayers are the source of tax revenues. Economics, the science of choice, would be unnecessary.Ģ-2Ĝomment on the following statement from a newspaper article: "Our junior high school serves a splendid hot meal for $1 without costing the taxpayers anything, thanks in part to a government subsidy." Every person could have as much as they wanted of any good or service. If resources were unlimited and freely available, making choices would not be necessary. 2-1Ğxplain this statement: "If resources were unlimited and freely available, there would be no subject called economics."
0 kommentar(er)
