Question

Sort the resources used in production into the appropriate bin then answer the multiple choice question. Land Labor Capital Entrepreneurs Mark's Taco Truck (the truck itself) Lake Mead Your favorite bartender Ore Farmer Tanner's tractor The Rio Grande our the idea) (the business) Sonic Drive-In Which resource earns profits? O labor capital O entrepreneurs O land

Answer 1

1 Land : Includes naturally available resources like land, water, air rtc.

Lake Meed

Ore

Rio Granade

2.Labor: Human capital hired for production.

Your favorite bartender

LaShonda., a server at sonic drive in

Your coworkers

3. Capital: Includes money and goods used to purchase another goods

Mark's Taco truck(the truck itself)

farmer Tanner Truck

4. Entrepreneur ; People creating business

Mark's taco Truck(the idea)

Aunt Sandy's Jammins Jelies (the business)

2. The payment that an entrepreneur receives for taking the risk by investing money in all the other factor of profuction to produce output using his Entrepreneurship abilities and risk appetite is profit. Hence the Entrepreneur receives the profits.

Labor receives wages, land and capital receives rent.