We live in a world of scarcity. Those who are concerned with such matters worry
not only about running out of nonrenewable energy and material resources but
also about the lopsided use of those resources.
Economics is the study of how limited resources are distributed among
alternative uses. In productive organizations, managers are the trustees of
limited resources, and it is their job to see that the basic factors of
production-land,labor,and capital-are used efficiently as well as effectively.
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