System development/Modelling/Concepts/Resource

In economics a resource is defined as a service or other asset used to produce goods and services that meets human needs and wants (source: Wikipedia). Economics itself has been defined as the study of how society manages its scarce resources.

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Classical economics recognizes three categories of resources, also referred to as factors of production:

  • Land: Land includes all natural resources and is viewed as both the site of production and the source of raw materials.
  • Labor: Labor or human resources consists of human effort provided in the creation of products, paid in wage.
  • Capital: Capital consists of human-made goods or means of production (machinery, buildings, and other infrastructure) used in the production of other goods and services, paid in interest.