What economic term describes resources that are limited in supply?

The term that best describes resources that are limited in supply is "scarce resources." Scarcity refers to the fundamental economic problem of having seemingly unlimited human wants in a world of limited resources. Scarce resources are those that are available in finite quantities, leading to competition for their use and allocation among different individuals or groups.

Since resources are limited, they cannot fulfill all of society's wants and needs, necessitating choices about how to allocate these resources efficiently. This underpins various economic principles, such as opportunity cost and the need for trade-offs.

While "effective resources" might imply the usefulness of resources, it doesn't address their availability. "Available resources" is a bit broader but does not necessarily indicate the limitation aspect emphasized in the question. "Renewable resources" refers specifically to resources that can replenish over time, which doesn't inherently imply scarcity, as some renewable resources can still be overused and therefore become scarce. The concept of scarce resources is crucial in understanding economics, as it lays the foundation for how societies manage and prioritize resource allocation.