Basic economic problem, resources have to be allocated between competing uses because wants are infinite whilst resources are scarce., Scarce resources, resources that are limited in supply so that choices have to be made about their use., Choice, economic choices involve the alternative uses of scarce resources., Renewable resources, resources such as fish stocks or forests that can be exploited over and over again because they have the potential to renew themselves., Non-renewable resources, resources such as coal or oil which once exploited cannot be replaced., Sustainable resource, renewable resource that is being economically exploited in such a way that it will not diminish or run out., Non-sustainable resource, a resource which can be economically exploited in such a way that its stock is being reduced over time., Opportunity cost, the benefits foregone (lost) from the next-best alternative when making a choice., Needs, the minimum that is necessary for a person to survive as a human being., Wants, desires for the consumption of goods and services., Economic goods , goods that are scarce because their use has an opportunity cost., Free goods, goods that are unlimited in supply and which therefore have no opportunity cost., Factors of production , the inputs to the production process: land, labour, capital and enterprise (or entrepreneurship)., Land, as a factor of production, is all natural resources., labour, as a factor of production is the workforce., Enterprise or entrepreneurship, as a factor of production is the seeking out of profitable opportunities for production and taking risks in attempting to exploit these. , Entrepreneurs, individuals who seek out profitable opportunities for production and take risks in attempting to exploit these., Capital, as a factor of production is the man-made (or artificial) resource., Fixed capital, economic resources such as factories and hospitals which are used to transform working capital into goods and services., Working (or circulating) capital, resources that are in the production system waiting to be transformed into goods or other materials before being finally sold to the consumers..

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