Scarcity implies limited quantities of resources to meet unlimited wants.

Shortage is a situation in which a good of service is unavailable

The Factors of Production are land, labor, and capital.

Land is all of the nartural resoucres that are used to produce goods and services. Natural resouces are materails found in nature. They include fertile land for farming and products thawt are in or on the land, such as coal, water, and forests.

Labor is the effort that a person devotes to a task for which that person is paid. Labor includes the medical aid provided by a doctor and the tightening of a clamp by an assembly line worker. It's is an aritist's creation of a painting or the repair of a television.

Capital is any human-made resource that is used to produce other goods and services. The two categories of capital are physical capital and human capital.

Physical Capital all human-made goods that are used to produce other goods and services. Ex: tools and buildings

Human Capital is the knowledge and skills a worker gains through education and experience.

Entrepreneurs are ambitious leaders who decide how to combine land, labor, and capital resources to create new goods and services.