... air we breathe. The rest are scarce, because there are not enough natural resources in the world to satisfy the demands of consumers and producers. Air is classified as a free good since consumption by one person does not reduce the air available for others - a free good does not have an opportunity cost. The second factor of production is Labour, which is the human element into the production process - i.e. the workforce of an economy. Not every person is the same, and each worker has an unique set of inherent characteristics including intelligence, manual dexterity and emotional stability, but they are also the product of education and training. The value of a worker is called his/her Human Capital - education and training increases the persons value since they become more efficient and productive. In the UK, of about 59 million inhabitants only approximately 35 million are of working ...

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