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    four economic resources

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    1.What are the four economic resources? How is each resource defined?

    2.What is the law of increasing opportunity costs? Why do opportunity costs increase?

    3.What do each of the following seek if they pursue their own self-interest: consumers, resource owners, and business firms?

    4.In the circular flow model, what are the two markets? What role do households play and what roles do businesses play in each market?

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    Solution Preview

    1.What are the four economic resources? How is each resource defined?
    The four economic resources are land, labor, capital, and entrepreneurship. Land refers to natural resources that are gifted by nature, labor refers to the human capital that includes laborers and workers that earn wages. Capital refers to the machines, factories, and equipment used for production of final goods. Entrepreneurship is the ability of the person to combine other factors of production, land, labor, and capital to make a profit.

    2.What is the law of increasing opportunity costs? Why does opportunity costs increase?
    The law of increasing opportunity costs says the opportunity ...

    Solution Summary

    This explanation provides you a comprehensive argument relating to four economic resources

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