Production involves bringing together certain inputs – called factors of production or resources- to create goods and services i.e., the output. Resources are the ingredients necessary for producing goods and services, just as you cannot bake a cake without ingredients of flour, eggs, sugar, and so on. It is these resources that are scare and, in turn, cause goods and services that are produced with them to be scarce.
Nature is the only source of all kind of primary resources. The primary resources can be termed as ‘natural recourse’.

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