I'm having difficulty understanding an answer to a question in economics. The question was whats not an example of a scarce economic resource and a few answers was land water labor and money. The correct answer was money for some reason. As far as I can tell thats definitely a scarce resource. Can someone help me wrap my head around this?
Our economy is full of money. Money won't run out. Land, water, and labor, on the other hand, can all run out. Those three things are natural and cannot be recreated, whereas money is something we manufacture. Money can also adapt if needed; we can use pretty much anything as currency. Land, water, and labor can only be one thing.
Does that help?
Money is not an economic resource because it only facilitates the trade of resources, and does not have anything to do with production (that’s what the economic resource deal is essentially all about).
It only facilitates the trade of resources, an analogy to this in the form of a second question would be:
which of the following is not a popular video game:
A. xbox one C. Skyrim
B. Grand theft auto 5. D. Fortnite
obviously the answer is A, an Xbox one is not a video game, but it (and other versions of it) is necessary for video games to be played.
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