Economics

6.6(B)

When Resources Run Short

Identify problems that may arise when one or more of the factors of production is in relatively short supply.

Part of The student understands the factors of production in a society's economy

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Intro

When Something Runs Short

Every society needs four things to make goods and services: land, labor, capital, and entrepreneurship. These are the factors of production. When one of them is in short supply, problems follow. That is scarcity: there is not enough of something to satisfy everyone who wants it, so people must make trade-offs.