resources are those scarce resources which help in the production of goods and
The economic resources are classified under two main heads:
(1) Property Resources and (2) Human Resources.
Resources: In property resources, we include land and capital. The term
land is used to describe all natural resources which are used in the process
of production and yield income. These resources which are free gifts of nature
include agricultural land, forests, mineral deposits, fisheries, rivers, lakes,
oil deposits, etc.
The term capital refers to all man made resources
which aid to production. Thus machinery, equipment, tools, factories, storage, transportation, etc., which are used in the
production of new goods and supplying them to the ultimate consumers are capital
(2) Human Resources: Human resources include
labor and entrepreneurial ability. Labor in economics refer to human effort,
physical and mental which is directed to the production of goods and services.
Thus factory worker, clerk, typist, teacher, doctor. Judge, physicist, etc.,
fall under the category of labor.
may here be noted that it is the services of labor which are bought and sold for
money and not the labor itself. As regards the supply of labor, it depends upon
the (i) size of total population (ii) age composition of the population
(iii) the availability working population (iv) the working hours devoted
to production (v) the remuneration paid to the workers, etc., etc.
Definition of Entrepreneur or
entrepreneur or enterprise is the person who takes initiative and combines
resources for the production of goods and services (i) makes basic
policy decisions (ii) attempts: to introduce new products, new
forms of business organization, etc., and (iii) bears risk.