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Economic Resources (Factors of Production) include Natural Resources, Human Resources and Capital Resources. If we ran a construction business, which of these items would NOT be considered a Capital Resource?

a. Our office building containing our corporate offices
b. Construction materials in a warehouse
c. Cash in the bank
d. A crane that our company owns

User Gonzojive
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1 Answer

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Final answer:

In a construction business, cash in the bank is not considered a capital resource. Capital resources include tools, equipment, and buildings used in production, whereas cash serves for facilitating transactions.

Step-by-step explanation:

The factors of production are the resources needed to produce goods and services, which include land, labor, capital, and entrepreneurship. Regarding the construction business's capital resources, these are the tools, equipment, and buildings that help in the production process.

In the case of a construction business, option c. Cash in the bank would NOT be considered a Capital Resource. While cash is crucial for the functioning of a business, it is usually classified under financial resources and serves more as a medium for acquiring capital goods, paying labor, or purchasing natural resources, rather than being a capital good itself.

User Nandaloo
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