PDSnet Glossary

Term

Categories

Introductory Technical Fundamental Economics Opinion Sectors International Regulatory Other Markets

Versions

Name	synonyms = 1, variations = 2, abbreviations = 3

Publish: (0 = no, 1 = yes)

Definition

An economics concept which refers to the four broad categories of scarce resources used in the economy. Those resources are land, labour, capital and entrepreneurial ability. All products and services in the economy are produced using these factors of production in various combinations. The scarcity of these items generally determines their price in the market. All economies are involved in the allocation of scarce resources among their population. In a capitalist system the price mechanism largely determines how resources are allocated.

Edit Glossary Term