Scarcity Essay

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Recommended: Merits of factors of production

For a business there is many things that is required to keep that business in business. For example, In order to create an product the society must choose upon it’s needs, resources they have and choose based on it’s populations and other available markets.The factors of production is the readiness to work on answer the three questions (What?, How? and For whom?) in order to solve the problems of scarcity. Scarcity is a resources that is limited, a certain number of available resource. Or paying simple bills to stay in a certain location. To sell a certain amount products could affect how a business runs, based off it’s amount of products sold. And then there is the factors of production. Land isn’t about where something is located in a area, Labor is the help to create things, and Capital and Entrepreneurship are necessary to a business.

What does factors of production got to do with land? Well Land isn’t all about where a business is located. It’s mostly about the natural resources, which for example are diamonds, wood, water, coal, gold, etc. And this deserves to be ranked first. I think so because with no resources no business won’t be able to run successfully. Aswell most resources have scarcity to create an product with could cause a business owner to look for for an alternative resource. If there wasn’t land in the factor of production, most of the businesses would fail because they won’t be making money by not being able to create products. So overall land should be first since you got to have resources in order to create other new products.

How does labor affect the factors of production and what is it’s main purpose? Well according to Federal Reserve Bank of Saint Louis, they say Labor is, “ Labor is ...

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...e they want to be successful without taking such high risks that could take their business down hill if they taken a risk. For sure every entrepreneur knows every risk can be good, but can have a negative effect if taken the wrong way.
But to another person they would definitely disagree with my view because not everyone has the same opinion. But also other people have different opinions about how they see the factors of production too. For example some may see Entrepreneurship as being first because of being high of risk. Then they could see Capital second because of money and the equipment for a business. As for Labor they would say third because not much as important than the money and equipment a business would need. And finally Land being last because they might not care where some business is located, but not thinking natural resources out there for land.

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