ECONOMICS
PRODUCTIVE RESOURCES
|
Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
|
|
|
Factory Building
|
|
|
rocks
|
|
|
Oil Drill
|
|
|
Saw
|
Detailed explanation-1: -Money is not considered a capital resource because it is unable to produce anything. Entrepreneurs use their entrepreneurial skills and combine all the necessary factors of production to produce goods and services for society.
Detailed explanation-2: -The four major types of capital include working capital, debt, equity, and trading capital.
Detailed explanation-3: -It is useful to differentiate between five kinds of capital: financial, natural, produced, human, and social. All are stocks that have the capacity to produce flows of economically desirable outputs. The maintenance of all five kinds of capital is essential for the sustainability of economic development.
Detailed explanation-4: -Capital resources include money to start a new business, tools, buildings, machinery, and any other goods people make to produce goods and provide services.