Asked by Tingting Cheung on Jun 22, 2024
Verified
In the circular-flow diagram, factors of production include land, labor, and capital.
Factors Of Production
The resources used in the production of goods and services, typically classified into four groups: land, labor, capital, and entrepreneurship.
Labor
Tasks undertaken by individuals that aid in generating goods and services within an economy.
Capital
Financial assets or the financial value of assets, such as funds held in deposit accounts, as well as the physical factors of production including machinery and buildings.
- Achieve an understanding of the layout and constituents of the circular-flow diagram in the context of economics.
- Recognize the factors of production and their significance in the economy.
Verified Answer
Learning Objectives
- Achieve an understanding of the layout and constituents of the circular-flow diagram in the context of economics.
- Recognize the factors of production and their significance in the economy.
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