The scarcity of physical resources is far more fundamental to the study of economics than the scarcity of funds.

Question

Quizplus · Accepted Answer

Physical resources, such as land, labor, and capital, are the building blocks of economic production. Without these resources, it is impossible to produce goods and services. Money, on the other hand, is simply a means of exchange that facilitates transactions. While funds may be scarce in some circumstances, they are ultimately a less fundamental constraint on economic activity than physical resources.

The Scarcity of Physical Resources Is Far More Fundamental to the Study