Final answer:
Human resources are an essential input used to produce goods and services, contributing skills and knowledge to the production process. Investing in human capital improves workforce competence and productivity. Workers with higher education and skills have higher earning potential and contribute to economic growth.
Step-by-step explanation:
The true statement about human resources in the context of the factors of production is that they are an essential input used to produce goods and services. Human resources refer to the labor or workforce involved in the production process. They contribute their skills, knowledge, and abilities to the production process, making them a crucial factor of production alongside other resources like materials and machinery.
Investing in human capital is crucial for improving the workforce and increasing productivity. When workers have higher education, skills, and qualifications, they are more competent and motivated, leading to improved productivity. This, in turn, benefits both the company and the economy as a whole.
Workers with higher education and skills also have higher earning potential and contribute to the circular flow of economic activity. By participating in the economy, they generate income and contribute to economic growth. Overall, human resources are a vital factor of production that can significantly impact the success and productivity of a business.