What is meant by "economic resources" or "factors of production"? Name three categories of resources.

Economic resources, also known as factors of production, are the inputs used in the production process to create goods and services. These resources are used by businesses to create value and satisfy the needs and wants of consumers.

There are three main categories of economic resources or factors of production: Land, Labor, and Capital. 1. Land: Land refers to natural resources available on the Earth's surface. This includes both renewable and non-renewable resources like water, minerals, forests, oil and gas, and agricultural land, which are used directly or indirectly in the production of goods and services. 2. Labor: Labor refers to the human effort, skills, and manpower that contribute to the production process. This includes all types of work, such as physical labor, mental labor, and entrepreneurial activities. Labor can be skilled or unskilled and is compensated in the form of wages and salaries. 3. Capital: Capital encompasses the financial and physical resources used in the production of goods and services. There are two types of capital: a. Physical Capital: Physical capital refers to the tangible assets, such as buildings, machinery, equipment, and tools that are used to produce goods and services. b. Financial Capital: Financial capital refers to the funds used to acquire physical capital and finance the production process, such as loans, investments, and savings. These three categories of resources play a vital role in the production process, determining the quantity and quality of goods and services produced by an economy.