1.0 INTRODUCTION

Economies can be defined as, thrifty management of resources, such as land, labour, capital and enterprenuership learned to practice economy in making out the household budget. In factors of production there are commodities or services used to produce goods and services. And also explores how people and society try to use resources available , which have many different uses, in order to produce different goods and distribute among people. According to economist Lionel Robbins who defined economics as ‘The science which studies human behaviour as a relationship between ends and scarce means which have alternative uses. The primary factors facilitate production but neither become part of the product as raw materials. One of the factor of production is mainly called Land includes not only the site of production but natural resources above or below the soil. What is scarcity? Scarcity is a things that has some problems in economic having because of humans nature unlimited needs and wants. Humans were always wants more and more thats unlimited goals. This world has a limited resources which can be used. What will happened when all of the four factor of production is limited?

Factor of productions is defined as the input that used in the production of goods or services in the attempt to make an economic profit and also production can be defined as the resources that required to generaton of goods and services. This resources are generally classifeid into four major groups which are land, labour, capital and enterprenuership.

So what is land? One of the factor of production is mainly called land, includes not only the site of production but natural resources above or below the soil. Land is a natural resource that whose supply is generation by generation fixed. Land contains natural resources that a production of good and also a capital goods. Example of the natural resources in land is petroleum, coal, diamond, timber, gold and many more. If this land is became limited there are huge problem will this world faced, some of the problem is natural resources cannot be extracted or maybe become limited. Among this there a another factor of production is called capital, what is capital? Is that capital is important to our economy? Capital is a money. Capital played main role in this factor of production because the capital is helped we to buy the raw materials, machines, equipment, tools and many more.

The next factor of production is labour. What is the meaning of labour? Labour is means the people is working for a wages. The size of a labour force can be determined by population of adult in a country. Labour consists of the both physical and mental abilities of the workers to work in a company or in a working place to get a wages. Lets say the labour has been limited, what will happened? They cannot produce goods and sevices, example like, if one company’s labour is limited the production of product will stopped and will effect the company, because of this the economy will be effect. The last things in factor of production is entrepeurnership is a defined as a businessman, is a individual who uses all the resources effectively to run production. He should be risk taker and wiling to accept new challengers or wiling to accept lost or profits on their business.

1.2 WHAT IS SCARCITY?