Question

please match the following key terms with their examples.

-       A.       B.       C.       D.       E.       F.    A construction worker building a house       -       A.       B.       C.       D.       E.       F.    The nail gun used by the construction worker       -       A.       B.       C.       D.       E.       F.    Knowing how to construct a house       -       A.       B.       C.       D.       E.       F.    The training the construction worker has       -       A.       B.       C.       D.       E.       F.    The money used to purchase the nail gun       -       A.       B.       C.       D.       E.       F.    The lumber used to construct the house       -       A.       B.       C.       D.       E.       F.    The owner of the construction company

A. Labor B. Physical capital C. Human capital D. Financial capital E. Land F. Entrepeneurship

Answer 1

A. Labour - is efforts used to produce goods in society.

B. Physical capital - means assets including plant and machinery used to produce goods.

C. Human capital - value of skill, training, excellence in human.

D. Financial capital - means value of financial resources used to produce goods and services.

E. Land - it includes land, minerals, forest etc which are provided by nature.

F. Entrepreneurship - is one who combines all factors of production and earns profit.

Let's apply above definition in qesution:

1. Labour because of his efforts to produce house.

2. Physical capital, as it is used to produce goods.

3 & 4. Human capital, as it is knowledge, skill and training used to produce goods and services.

5. Money is financial capital.

6. Lumber is natural resource, hence land.

7. Owner is enterpreneur due to his ability to combine all factors of production to produce goods.

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