Distinguish between:
(a) Economic resources and non-economic resources.
(b) Want and Demand.
(c) Money Cost and Real Cost.
Explanation
(a) Economic resources are those resources which have an opportunity cost. Their supply is inadequate relative to the demand for them. They include production factors land, labour etc. People / producers are willing to forgo certain wants in order to obtain them. Non - economic resources are items whose supply is inexhaustible or greater than the demand for them. They are "free" goods. Air for example is useful but not an economic resources. Supply exceeds demand . It does not have an opportunity cost
(b) Wants are desires, wishes or ends not backed by money or ability to purchase while Demand refers to wants, desires or willingness to purchase plus ability to pay for such desires.
(c) Money cost is the naira value of an item. It is the cost in terms of legal tender currency while Real cost is opportunity cost or the best alternative foregone in order to produce or provide a particular item.