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I 've always wondered how goods get made by companies in these factories
Why don't we find out? Let's ask for a look around.
Capital is also divided into three categories: human, physical, and financial
Thanks for giving us a tour. What exactly goes into making these goods?
All production starts with land, labor, capital, and entrepreneurship
Land is all of the natural resources found on Earth.
That's all correct! and entrepreneurship is the innovation, skill, vision, and creativity required to start a business
Would examples be minerals, oil, woods and animals?
Thank you for the look around! Now we can understand of how
Does that mean that capital is the resources used by humans for more efficency?
Yes! And labor is time, workers, and effort that humans put into making all goods and services.
Yes! Physical capital is the physical resources available to a business
So that would mean human capital is the experience that result in knowledge or skills to produce goods and services?
Oh! So entrepreneurs must combine all four factors of production to drive the economy!
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