Multiple Choice
Which of the following is NOT one of the four main categories of economic resources (factors of production)?
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0. Basic Principles of Economics
Factors of Production
Multiple Choice
Which of the following situations best illustrates when a resource is considered valuable in economics?
A
When the resource is not desired by any consumers or producers
B
When the resource cannot be used in any production process
C
When the resource is scarce and has alternative uses
D
When the resource is abundant and freely available to everyone
Verified step by step guidance1
Understand the economic definition of a valuable resource: In economics, a resource is considered valuable if it is scarce and can be used in multiple ways (alternative uses).
Analyze each option by checking if the resource is scarce and has alternative uses, since scarcity means limited availability relative to demand, which creates value.
Recognize that if a resource is not desired by consumers or producers, it lacks demand and thus is not valuable economically.
Note that if a resource cannot be used in any production process, it has no productive value, so it is not considered valuable.
Understand that if a resource is abundant and freely available to everyone, it is not scarce, so it does not have economic value despite being available.
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