Resource and Scarcity

1. RESOURCES

2. RESOURCES
• Resources = what is needed to produce goods
and services
• Economic resources are the factors used in
producing goods or providing services.
• In other words, they are the inputs that are
used to create things or help you provide
services.

3. RESOURCES
• FOUR TYPES OF RESOURCES
1. Land
2. Labor
3. Capital
4. Entrepreneurship

4. LAND
• Land includes all natural physical resources like
gold, iron, silver, oil etc
• Some countries have very rich natural resources
and by utilizing these resources they enrich their
economy to the peak.
• The economy of many countries is based on
their natural resources
• The amount of natural resources available to
a society has a direct effect on its economy.

5. LABOUR
The human input in the production or
manufacturing process is known as labor.
. Workers have different work capacity
The work capacity of each worker is based on his
own training, education and work experience.
Labor can be skilled or unskilled, physical or
intellectual.
One of the biggest problems facing many
nations today is not a shortage of labor but a
shortage of skilled labor

6. LABOUR
To achieve the economic growth the
raise in the quality and size of
workforce is very essential.

7. CAPITAL
• Capital resources are the things used to
produce goods and services, like buildings,
materials, and equipment.
• As the wants and needs of people change, so
do the needs for capital resources.
• Following are the factors of capital: Fixed
Capital: It includes new technologies, factories,
buildings, machinery and other
equipments. Working Capital: It is the stock of
finished goods or components or semi-finished
goods or components

8. ENTREPRENEURSHIP
• The Entrepreneurship is person or individual
who wants to supply the product to the
market to make profit.

9. ENTREPRENEURSHIP
• Why it is required?
• Meeting the changing wants and needs of
people requires entrepreneurial
resources.
• Entrepreneurs improve on ways to use
resources, or create and produce new
ones.

10. SCARCITY
Scarcity
Limited quantities of resources to meet the
unlimited wants.
It occurs when we do not have resources to
produce all the things we would like to
have.
No country have all the resources it
needs……..the result is scarcity.

11. SCARCITY
• What does it means?
• Your wants are pretty much unlimited.
• All resources, goods, and services are limited,
however.
• This means it’s impossible for all the wants to
be met.

12. SCARCITY
• Here we need economics….to solve the
problem.
• What to produce
• How to produce
• For whom to produce

13. SCARCITY
• Scarcity forces us to make a choices as society.
• Society must decide.
• What goods and services to produce.
• How these goods and services will be produce.
• Who should receive these goods and services.

14. TRADE -OFF
• Trade off is when one thing is given up in
order to get another.
• Example
• A government decides whether to spend
money more on education or more on
defense.
• Hospital decides whether to build a gym for
doctors & staff or to build a new canteen.

15. OPPORTUNITY COST
• Making a choice…..any choice always has
some cost.

16. Understanding Opportunity Cost
We make choices every day. We have to, as we
have limited resrouces but so many wants.
We therefore have to decide which wants we
will satisfy and those we will not.
All choices involve giving something up is called
Opportunity Cost.

17. What is Opportunity Cost?
Opportunity Cost is the cost of a decision in
terms of the best alternative given up to
achieve it. It is the best alternative forgone.

19. Economic Goods
This mean that it takes resources to produce
them and hence, their production involves an
opportunity cost. They are limited in supply.
Almost every good and service is economic
good.

20. OPPORTUNITY COST
• So every time you make an economic choice ,
• There is an opportunity cost to you in terms of
what you had to give up/ trade off
• opportunity cost are fundamental cost in
economics, such cost are not recorded in
account books but are recognized in decision
making. thus resulting in profit or loss.