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Question
what are 3 ways a nations economy is shaped by the unequal distribution of factors of production?
lesson 1, continued
a factor of production is increased, then the benefit is known as an expansion of the business.
natural resources include raw materials to produce goods and land on which a business is built. service companies need to be located near their potential customers. capital, or capital goods, is the total of all the equipment or property. financial capital is the money a business uses to buy the capital goods needed for production. labor is human time, effort, skills, and talent needed to produce goods and services. entrepreneurs are the people who come up with ideas for new products or businesses. they risk their labor and capital in hopes of making a profit. availability or lack of each factor of production can cause contraction or expansion of a business.
the factors of production are not distributed equally. this causes countries to decide what to produce based on their resources. this can lead
what are the two kinds of capital?
underline three ways a nations economy is shaped by the unequal
Capital goods (equipment/property) and financial capital (money for production) are two types of capital as per the text.
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Capital goods and financial capital.