Final answer:
The three essential resources of a business are land, labor, and capital, which are required for the production of goods and services. Entrepreneurs organize these resources, which are exchanged in resource markets, and must deal with the challenge of scarcity.
Step-by-step explanation:
The three resources of a business are commonly known as the three factors of production: land, labor, and capital. Land encompasses the natural resources a business uses, including physical materials such as minerals, forests, and real estate. Labor refers to the human effort from workers that is necessary for the production process. Capital is formed by the machinery, tools, and technology that enable the creation of goods and services. It's important to note that each resource must be produced and can be used to produce other goods and services, and that's what makes them valuable to a business.
Entrepreneurship is sometimes considered a fourth resource because entrepreneurs organize the other three resources to create goods and services. Scarcity challenges businesses to make efficient use of these resources since there is never an infinite supply to meet all wants or demands. Lastly, in a market economy, the resource market is where the exchange of these resources occurs, with businesses buying resources like labor, land, and capital to produce their goods and services.