Question: What Are Your Two Most Scarce Resources?

What are two scarce resources?

Scarce resources are the workers, equipment, raw materials, and organizers used to produce scarce goods.

Like the more general society-wide condition of scarcity, a given resource falls into the scarce category because it has a limited availability in combination with greater (potentially unlimited) productive uses..

What is the evidence that resources are scarce?

Scarcity means that at a zero price the supply of something exceeds its demand. The existence of non-zero prices is the proof of scarcity.

What are the three resources?

Natural Resources, Human Resources, and Capital Resources are the three types of economic resources, and they are also referred to as “factors of production”.

What is a scarce item?

Scarcity refers to the basic economic problem, the gap between limited – that is, scarce – resources and theoretically limitless wants. This situation requires people to make decisions about how to allocate resources efficiently, in order to satisfy basic needs and as many additional wants as possible.

Why are all resources scarce?

– All goods and services are scarce because the resources used to produce them are scarce. – There are only so many natural resources available to produce particular goods. Scarce Resources, cont. The amount of labor available to produce goods and services can be limited.

What are examples of scarce?

Some examples of scarcity include:The gasoline shortage in the 1970’s.After poor weather, corn crops did not grow resulting in a scarcity of food for people and animals and ethanol for fuel.Over-fishing can result in a scarcity of a type of fish.More items…

What are the four scarce resources?

It’s time to wrap things up, but before we go, always remember that the four factors of production – land, labor, capital, and entrepreneurship – are scarce resources that form the building blocks of the economy.

Is water a limited resource?

All life on Earth depends on water, a vital natural resource. … However, it is a limited resource; freshwater makes up only about three percent of all water on Earth.

What are examples of unlimited resources?

However, something can be considered unlimited if there is more than can possibly be used. One example of this is energy from sunlight. More sunlight falls on the earth in an hour than the entire human race uses in a year, so solar energy can be considered unlimited.

Why is money scarce?

Without money there would be less trade and therefore less specialization and productive inefficiency. Therefore, from the same quantity of resources, LESS would be produced . … Therefore money allows us to use our limited resources wisely and produce MORE with the same amount of resources. this helps to reduce scarcity.

Why are resources limited?

The phrase limited resources means that the quantities of productive resources available to the economy are finite. The economy has a finite amount of labor, capital, land, and entrepreneurship that it can use for production. It might have a lot of those resources, but the quantities are NOT infinite.

What is the rarest resource on earth?

Named after the Greek word for unstable (astatos), Astatine is a naturally occurring semi-metal that results from the decay of uranium and thorium.

What is Earth’s largest natural resource?

WaterWater. Without a doubt, water is the most abundant resource on the planet. Approximately 72 percent of our planet is covered with water.

What is the most scarce resource?

The six natural resources most drained by our 7 billion peopleWater. Freshwater only makes 2.5% of the total volume of the world’s water, which is about 35 million km3. … Oil. The fear of reaching peak oil continues to haunt the oil industry. … Natural gas. … Phosphorus. … Coal. … Rare earth elements.

What resources will run out first?

Here are six natural resources already under severe pressure from current rates of consumption:1 – Water. … 2 – Oil. … 3 – Natural Gas. … 4 – Phosphorus. … 5 – Coal. … 6 – Rare Earth Elements.