Wednesday, 11 May 2016

Economic Resources - Microeconomics

Economic Resources

So today we will be talking about economics resources and the economics theory behind it.
 If you miss the first economics post of this series of posts click here->  how markets work?

So what is economics resources?

They are goods and services that are available to both individuals and businesses which are ultimately used to produce valuable consumer products.

Economics resources are therefore the factors of production. These are Capital, Enterprise, Land and Labour. These are explained in more detail in the table below.

These four factors can be remembered using the acronym CELL.

C- capital
E- enterprise
L- land
L- labour

The environment is a scarce resource and the planet has a limited amount of resources. They are made up of non-renewable and renewable resources.

Renewable resources- Renewable resources are resources that can be used over and over again without potentially running out and also it can be replenished. Examples of this include oxygen, fish or solar and wind power. However if the resource was to be in demand more than the amount being produced or able to produce the resource would decline.

This could be prevented and controlled by for example reducing deforestation, or imposing fishing quotas.

Non-renewable resources- Non-renewable resources are resources that cannot be used over and over again due to the fact that they will finally run out at some point. Examples of this are oil, fossil fuels etc... as they cannot be replenished at the rate they are being used.

That's all for today guys. Hope that the information was helpful. If you missed our last post on Economics Methodology, click here -> Economics Methodology

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