Which of the following best describes what economists mean by 'resources'?

• A. The total amount of money available in an economy
• B. Government policies that regulate markets
• C. Finished products ready for consumption
• D. Inputs used to produce goods and services, such as land, labor, and capital

Answer: (D)

Verified step by step guidance

1. Understand that in microeconomics, the term 'resources' refers to the basic inputs used in the production process.
2. Recognize the three main categories of resources: land (natural resources), labor (human effort), and capital (machinery, tools, buildings).
3. Differentiate resources from other economic terms such as money (which is a medium of exchange, not a resource), government policies (which are external factors), and finished products (which are outputs, not inputs).
4. Recall that resources are also called 'factors of production' because they are essential for producing goods and services.
5. Conclude that the best description of 'resources' in economics is 'inputs used to produce goods and services, such as land, labor, and capital.'