As a factor of production how is capital created?

a. by adding land to entrepreneurship
b. by adding human labor to land
c. by removing land from services.
d. by using labor to create services

Respuesta :

The answer is :

B- by adding human labor to land (rip x)

Answer:

The answer is: B) by adding human labor to land

Explanation:

Natural resources are the main component of the land factor of production. Let's use iron as an example of how it can turn into capital goods.

Iron by itself is just a natural resource, but once labor is added it turns into steel and then it can be used to build machines that are used to produce other goods. When iron is turned into a machine, it becomes capital.