Answer to Question #302742 in Macroeconomics for Yabu

Question

Describe the four categories of economic resources. Which category of resources you and your family owned?

Answer 1

Land

These are all the natural resources that are used in production. They include the surface in which the physical location of a business is erected or built. Similarly, they includes not just land, but anything that comes from the land. Some common land or natural resources are water, oil, copper, natural gas, coal, and forests. The income that resource owners earn in return for land resources is called rent.

Labor

This is the effort that people more especially laborers put into the business activities for the production of goods and services.  For instance, an artist's creation of a painting as well as the work of the pilot flying the airplane overhead. If you have ever been paid for a job, you have contributed labor resources to the production of goods or services. The reward for an entrepreneur is a wage or salary.

Capital

This refers to the tools, machinery and as well as buildings that people use in the production of goods and services. Some common examples of capital include hammers, computers, and delivery vans. The reward for capital is interest.

Entrepreneurship

An entrepreneur is a person who assembles all the others factors of production and starts a business activity with the aim of making a profit.

We owns land