Question

Katrina is starting her own business producing all-natural beverages. She must use ✔ resources to create her product.

The water that she is using to create her beverage line is an example of ✔ land.
The number of employees required to produce her beverage line is an example of ✔ labor
The rent money she pays for a factory to produce her beverage line is an example of ✔ capital

Answer 1

Katrina's use of water for creating her beverages represents the land category of natural resources, her employees represent labor, and the factory rent is considered capital in the business's factors of production.

Step-by-step explanation:

Katrina is using various factors of production to start her all-natural beverages business. The water used in her beverages is a natural resource, which falls under the category of 'land' in economic terms. This is because natural resources are materials derived from nature without human alteration and used to create goods and services. As for the employees she hires, they represent labor, which is the human effort that goes into the production process. Lastly, the rent she pays for her factory space is part of capital, specifically physical capital that includes the infrastructure and facilities necessary to produce and distribute her beverages.