Final answer:
Computer system assets include hardware, software, and communication networks; the fourth category is data or information. Physical and human capital both contribute to productivity, with physical capital being the tangible assets used by firms, and human capital being the skills and knowledge of workers.
Step-by-step explanation:
The assets of a computer system can be categorized into hardware, software, communication lines and networks, and data or information.
When discussing the value of a computer system's components, it is notable that the value of physical materials like plastic parts and wiring is often small compared to the value of the technology and ideas that enable advanced processes.
The concept of physical capital represents the tangible elements that firms use, including tools like computers, as well as infrastructure like roads.
Improving physical capital, either by increasing its quantity or enhancing its quality, leads to higher productivity. This pairs with human capital, which encompasses the skills and knowledge that enable productivity. Investing in both physical and human capital can lead to increased productivity and output over time.
Innovations such as inventions and technological advancements are critical in enhancing the functionality and value of computer systems.