Questions and Answers
What is Capital?
What are the three factors of production?
Land, Labor, Capital
What does Human Capital refer to?
The education, skill level, and skill set of a person.
What is an example of Physical Capital?
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What does Entrepreneurship involve?
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Study Notes
Capital
- Refers to assets that contribute positively to production and economic activities.
- Includes both human and physical capital.
Three Factors of Production (Inputs)
- Land: Represents all natural resources and geographical locations utilized for goods production.
- Labor: Encompasses human effort, combining both physical tasks and mental capabilities in creating goods or services.
- Capital: Refers to resources that aid labor, including both human input and physical tools.
Human Capital
- Indicates the level of education, skillset, and competencies possessed by an individual.
- Plays a crucial role in determining productivity and economic contributions.
Physical Capital
- Comprises tangible assets such as machinery, vehicles, and buildings.
- Essential for facilitating production processes and enhancing efficiency.
Entrepreneurship
- Involves the initiation of innovative concepts and financial strategies to turn ideas into marketable economic goods.
- Crucial for fostering economic growth and development through new business ventures.
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Description
Explore key concepts in economics with these flashcards focused on land, labor, and capital. Each card provides definitions and explanations for essential terms in understanding the factors of production. Perfect for students looking to strengthen their economic vocabulary.
