5 MOL! – What are Resources?2 min read

More gold is required…

Computer games actually teach economics pretty well. In a Real Time Strategy (RTS) game, the player (i.e. you) has to gather resources such as Gold and Lumber. You then get your minions to use these resources to build barracks. These barracks can then be used to spawn fighting troops.

In economics, we classify resources into four broad categories. Land, Labour, Capital, and Entrepreneurship.

Land here includes anything that comes from nature. It could be actual land space, but it doesn’t have to be. So in the RTS game example it would be Gold and Lumber because you harvest them from the terrain. Can you think of more examples?

Labour is basically workers; the definition is literal. Labour can either be measured by units of time worked (the terminology is man-hours) or number of people employed. All of us will probably be part of the labour force after we finish our education. In the game, the minions are what count as labour.

We will look at the remaining two classes of resources tomorrow.

Question of the Day

Answers will be given tomorrow.

Which of the following is considered ‘Land‘ in economics?

a. A fisherman’s boat.
b. A factory.
c. Fish in the ocean.
d. A HDB flat.

Further questions:

  1. Based on whatever understanding you have now, why do you think we have to learn about resources in economics?

  2. In the above I have said that there are four classes of resources, do you think this definition is adequate? Ask Google to find out.

  3. Both your local grocery store and Apple employ resources to make their products and offer their services. Can you list some of the resources they employ? How are they different or similar?

We look forward to seeing your responses in the comments section below!

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Till next time, dream economics.

 

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