Question

Economists classify resources, or factors of production, into four general categories. Take a look at the statements about resources below. Determine whether each statement is true or false and drag the appropriate label into each box. rue 1. The resource category "land" refers to all natural resources including fertile land, forests, mineral deposits, solar and wind energy, and water. False 2. The resource category "labor" refers to the mental and physical productivity of workers. 3. The resource category capital" refers to financial assets, such as bank accounts, bonds, certificate of deposits and stocks. 4. The resource category "entrepreneurial ability" refers to business skills such as the management of resources, the drive to innovate, and the willingness to bear risk.

Answer 1

ANSWER:

1) True as it includes all the natural resources found in nature.

2) True as it includes the physical and mental talent that people contribute towards the production of goods and services.

3) False as capital means produced goods that can be used for production

4) True as the talent that people have for taking advantage of new business opportunities and developing new products in new ways.