Limited Resources

Definition

Limited resources refer to the finite availability of inputs such as land, labor, capital, and natural resources that are used in the production of goods and services. These resources are scarce relative to society's unlimited wants.

Related terms

Opportunity Cost: The value of the next best alternative that is forgone when making a choice.

Factors of Production: The resources used in the production process - land, labor, capital (goods used for production), and entrepreneurship.

Market Equilibrium: The state in which quantity demanded equals quantity supplied, resulting in no shortages or surpluses.