Not everyone fully understands what the limitations of economic resources are, and therefore they consider the problem of insufficiency of such resources, both qualitatively and quantitatively, not so acute. However, they are obviously not enough to satisfy all the needs of people. The product of economic activity is necessary for every person, social category of citizens, family and state.
Types of production factors
Before determining the limitations of economic resources, it is necessary to clearly understand what applies to them.
- Natural reserves - a combination of systems and individual objects surrounding a person and used by him in the course of social production in order to meet their needs.
- Real capital in the form of cash and securities. Its value is measured by the price estimate of production assets. It allows you to effectively manage the creation of wealth.
- Entrepreneurial abilities, which are certain qualities that provide the opportunity to find and effectively apply the most promising combination of resources for economic activity.
- Knowledge for leading an economic life. They are produced directly by science, and distributed through education.
- Labor resources include the population of the state, capable of engaging in socially useful activities throughout life. They are divided into two categories - active and passive.
5 types of economic activity were named. However, many medieval thinkers attributed labor to the most important of all. This approach was shared by the very first school of economics. Over time, all of the above factors took the lead.
What is the foundation of the economy based on?
To understand the limitations of economic resources, it is necessary to understand that all economic activity is based on a combination of the limitlessness of human needs and the lack of means and capabilities. Before material problems are resolved, effective options for using produced stocks should be well investigated.
It is impossible to reduce all this to the whole economic theory, but the existing contradictions form the axis through which the economic life of society passes. Almost always you have to make a choice of certain resources that will be spent on the acquisition or production of necessary goods.
Weaving and interchangeability of resources
Despite mobility and interchangeability, the problem of limited economic resources remains relevant. For example, if we take one of the production factors - knowledge, then it can be easily used for the rational consumption of natural reserves. This is achieved through research and development. Knowledge is no less important for the development of labor, as skilled workers are more efficient in their duties. They also allow you to increase the level of equipment used, thereby increasing real capital.
Financial and material resources are very mobile, because they are able to move in space. Natural resources are the least mobile, but they can also be transported to the right place.
The ability for mobility and interweaving indicates interchangeability, but it will not be complete.Human resources will not be able to replace capital, otherwise workers will not have the necessary equipment and inventory. At a primitive level, this option is quite possible, but with the growth of production, it becomes more difficult to do.
Distribution regulator
The market is a structured system that functions well with limited economic resources. The economic choice of such a regulator allows efficient distribution of production factors. The functions of the resource market are to promote the normal functioning of entities by focusing manufacturers on more economical options when changing the cost of products and services.
Such a distribution system plays an important role in the development of a country's economy. The optimization of trade and market relations is possible only if:
- create a balance between supply and demand;
- work on increasing production levels;
- to intensify competition for independent market relations;
- suppress the development of monopolistic structures.
These measures do not allow unhealthy rivalry on the site to flourish, therefore, the price categories of production factors will at a minimum depend on large capitalists.
Features of human needs
The main task of the economy is to apply production factors to obtain the final product. The problem is limited resources and needs that cannot be limited. Saturation is possible within the framework of consumption of household goods, but individual desires in terms of wealth do not have a pronounced limit.
The same applies to the desire of people to take possession of certain values that they do not yet have. As for state or collective needs, they are unlimited. Even in general terms, the boundaries of full satisfaction are problematic.
Thus, the population of countries, individuals, entire collectives need an almost unlimited amount of economic product, the production of which requires intermediate factors. This is where the contradiction arises between opportunities and needs.
What is the principle of limitation?
Since economic resources of any kind are limited not only quantitatively, but also qualitatively, they are not enough to fully satisfy the needs of people. This is the whole principle. With a limited amount of resources, it remains to correctly distribute them.
Land for arable land, arrays for the construction of economic facilities, reservoirs, minerals, plants and animals - these are natural resources that have certain boundaries. The work of people depends on their number, skills, abilities and many other factors. Funds produced in the form of buildings, equipment and various materials also have limits. The availability of secondary resources allows only partially recovering the funds spent on their construction.
The principle of limitation is large-scale, therefore, in foreign literature on economics it is called fundamental, and the problem itself is classified as determining. Some authors consider the economy as a whole as a science studying the possibilities of efficiently using scarce resources to create production factors. They see the main task in the search for options to increase the consumer effect.
People almost always want to have certain benefits in a greater volume or quality than to be content with real values.
What is the relative and absolute limited resources?
Shortage initially implies a gap between the total amount of goods needed by people to satisfy their own needs, and the ability to produce them.If there were no limitation, then studying the economy would be a meaningless exercise. Achieving the effectiveness of production factors would not matter.
The relative scarcity of resources largely depends on the level of development of technology and society. In this case, failure is not the most stringent condition. With this option, interchangeability is possible. In such situations, the main task is to effectively use the available resources.
Absolute limitation is characteristic of natural resources that are non-reproducible. It is practically impossible to restore newly poisoned soil or contaminated water.
Classification of economic goods
For a more detailed understanding, he suggests considering the option of classifying economic benefits, which means satisfying the needs of people. You can sort them by the following principles:
- long-term;
- short term;
- real
- expected;
- indirect;
- direct;
- complementary;
- interchangeable.
To create certain benefits, it is necessary to spend resources, which are a combination of all means, directly on the production process.
As a concluding part
Something like this can explain the limited nature of economic resources. This problem is faced not only by enterprises, government agencies, but also society as a whole. The multiplicity of goals in the economy with insufficient resources poses the problem of finding one of the best options for their use. Science at the same time tries not only to fix what is already available, but also develops ways to solve many problems.