What is referred to as natural resources in economics?

In economics, natural resources refer to the raw materials that are found in nature and used to produce goods and services. This encompasses elements such as land, water, minerals, forests, and fossil fuels, which are essential for the production process. These resources are considered foundational because they are utilized to create economic value and serve as inputs for various industries.

The term "land" specifically encompasses all natural resources that come from the earth, making it the most fitting choice in this context. It reflects both the surface area available for agriculture and other purposes, as well as the resources that are extracted from it, such as minerals and natural energy sources.

Other concepts, like labor, capital, and entrepreneurship, while crucial to the economy, do not fall under the category of natural resources. Labor pertains to the human effort involved in production, capital involves the assets used to produce goods, and entrepreneurship refers to the skill of organizing and managing resources for business ventures. Therefore, natural resources distinctly highlight the physical and environmental commodities that support economic activity.