Scarcity of Production Factors Steps:

• Define limited resources as scarce factors of production in economics (land, labor, capital, entrepreneurship).
• Evaluate each option to see if it describes scarcity in these factors.
• Identify capital (machinery) as a core production factor.
• Select the option matching capital scarcity.

Why C is correct:

• Limited resources include capital like machinery; insufficient machinery directly exemplifies scarcity of capital needed for production, per economic definitions of factors.

Why the others are wrong:

• A: Refers to scarce consumer goods (outputs), not input resources.
• B: Describes labor market issues (unemployment), not resource scarcity itself.
• D: Involves fiscal constraints (money), not a production factor like land or capital.

Final answer: C