Using examples of land, labor, and capital, explain why economist believe that all goods and services are scarce.

One of the main conditions of the economy is that the amount of available resources of labor, capital, land, which are used for the production of goods and services have limit borders. This means that the economy has a limited amount of resources for the production of goods and services.

Explanation:

All types of economic resources are limited both quantitatively and qualitatively. They are obviously not enough to satisfy the whole range of human needs. This is the principle of scarcity of resources.

Arable land and land for economic facilities, water, an air basin, minerals, flora and fauna - all this has finite limits of use, and in many respects refers to non-renewable natural resources.

The labor of people is limited by their quantity, ability and ability to work, labor return, and the amount of working time.

Capital, or investment resources, is represented by all manufactured means of production used in the production of goods and services and their delivery to the final consumer (buildings, structures, equipment, etc.). Means of production in the form of buildings, structures, machines, equipment, materials have clearly defined limits, due to the possibilities of their creation, the nature and effectiveness of the application, retirement as a result of wear and tear.

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