Food, clothes , houses ,education and health are the basic human needs.
Various ways used to satisfy the basic needs are known as wants.

• Needs are limited and wants are unlimited.
• Needs are common and wants vary from person to person.
• Needs are biological and wants are related to social and cultural factors.
  As mentioned below ,there are two types of goods which can satisfy human
  needs.
•  Free goods ( non economic goods)
•  Economic goods
• The following characteristics could be highlighted in non economics goods
• There are no cost of resources and opportunity cost
• Unlimited receipt from nature under zero price
• The following characteristics could be found in economic goods
• Cost of resources and opportunity cost exist.
• Produced by the man combining productions factors.
• Even if a non economic good is obtained by incurring factor cost, it becomes an
  economic good.

All inputs used for the production process are considered as resources.

• Scare resources used to produce goods and services incurring costs are known as
  economic resources.
• The resources used to produce goods and services, freely available in nature, which
  do not incurr opportunity cost and scarcity are called non economic resources.

Factors of production can be categorized mainly into four, as given below

•  Land
•  Labor
• Capital
• Entrepreneurship

All the resources gifted by nature, which can be used for production and have productivity are called land.

A few characteristics of this can be summarized as follows

• It is a natural resource
• Supply is inelastic
• Limitations of mobility present
• Productivity can be increased
• Payment for land is rent.

Physical and mental effort used for the production of goods and services are called labour

A few characteristics of labor are mentioned below

• Live factor of production
• Movable
• Heterogeneous
• Labor productivity could be developed
• Labor cannot be separated from the laborer
• Wage is the payment for labor

The number of labor hours employed during a certain period for the production of goods and services are called supply of labor

• Labor supply is determined by the factors mentioned below
• Labor force
• Number of working hours
• Wage level

Human creations used in the production of goods and services are known as capital

A few characteristic of capital are mentioned below

• Human created factor
• Exists to ensure productivity
• Repetitively used for production.
• Depreciation a necessary factor
• Payment for the capital is known as interest

Capital can be categorize in the following way

• Fixed /real capital
• Circulation capital / working capital
• Economic overhead capital
• Natural capital
• Social capital

There is a relationship between the savings investment and capital stock The process of taking production decisions, organizing production activities and monitoring while bearing a risk is known as entrepreneurship

The role performed by an entrepreneur can be summarized as follows

• Taking policy decisions
• Organizing production activities
• Monitoring production activities
• Innovations
• Bearing risks

The following characteristics exist in entrepreneurship

• Human factor
• Initiative ness
• Leadership qualities
• Ability to face challenges effectively
• Futuristic
• Self confidence
• Can be trained

• Resources are limited and they have alternative uses
• Since scarce resources have alternative uses, there is need to choose one
  alternative.

When a choice is made from among the alternatives the cost of next best
alternative is identified as the opportunity cost

• Opportunity cost is a real concept