Question

in the united states from an economy based on farming to one based on industry. the change was possible because the united states had the resources needed for a growing economy. among these resources were what economists call the factors of production--land, labor, and capital. as a factor of production, land refers not just to the land itself but also to all natural resources in it. petroleum is an example. the united states held many natural resources. the second factor of production is labor. it takes large numbers of workers to turn raw materials into goods. between 1860 and 1900, the population of the country more than doubled. the third factor of production is capital. these are the things people use to make other goods and services. the machines, buildings, and tools used to make automobiles, for example, are capital goods. money is another type of capital. finding capital for expansion with the economy growing after the civil war, many businesses looked for ways to expand. to do so, entrepreneurs (ahn·truh· pruh·nurz)--people who start businesses--had to raise capital in the form of money. they needed this capital to buy raw materials and equipment, pay workers, and cover other costs. one way a company can raise capital is by becoming a corporation (kawr·puh· pay·shuhn). this is a type of business organization that can have many owners and grow very large. a corporation often sells shares--part-ownership of the corporation-- called stock. it then uses the money raised to build the business. the people who buy the stock are the corporation’s shareholders (shair·hohl·duhz). when a corporation does well, shareholders earn dividends (dih·vuh· dends). these are cash payments from the corporation’s profits. the rise of corporations helped fuel industry in the late 1800s. railroads were the first to form corporations. manufacturing firms, banks, and other businesses followed. beginning why is capital important for economic growth? definitions of vocabulary: land, labor, and capital needed to make goods and services entrepreneur a person who starts a business corporation legally defined organization of people (not businesses) with the purpose of doing business stock shares of ownership a company sells in its business shareholder a person who invests in a company by buying stock dividend a shareholder’s share of a company’s profits, usually as a cash payment

Explanation:

The text discusses economic concepts like factors of production (land, labor, capital), corporate structure, and capital raising for businesses. This aligns with the subfield of Economics in Business, as it focuses on economic systems, business operations, and financial aspects of production and expansion.

Answer:

Economics (under Business)