What are four significant reasons for studying resource pricing?

What will be an ideal response?

First, the prices of resources (land, labor, capital, and entrepreneurial ability) are paid as rent, wages, interest, and profit, and thus determine nominal incomes. To understand why people earn the incomes they do requires an understanding of how resource prices are determined. Second, prices for resources allocate scarce resources among competing uses in a market economy. Efficient allocation of resources requires shifting of resources to their highest valued use in a dynamic economy. Third, expenditures for resources are a cost to businesses. Businesses are continually seeking to minimize the cost of production. Fourth, there are major policy issues related to resource pricing, such as minimum wage laws, interest rate ceilings, and the taxation of resources.