Terraform uses meta-arguments to control how resources are created and managed. For example, 'count' tells Terraform to create multiple copies of a resource. In the example, setting count=3 creates three instances. Terraform reads these meta-arguments first, then applies the resource settings like AMI and instance type. If 'depends_on' is not set, Terraform creates resources independently. 'for_each' is another meta-argument for iteration but cannot be combined with 'count'. Understanding these meta-arguments helps manage infrastructure efficiently.