Which economic resource combines other resources to create goods and services?

Which economic resource combines other resources to create goods and services?

• A. Nonrenewable resources
• B. Natural resources
• C. Capital goods
• D. Human resources

Answer: (C)

The correct answer is capital goods. Capital goods refer to the physical assets that a business uses in the production process to manufacture products and services that consumers will later use. These goods are typically durable items like machinery, tools, buildings, and equipment that aid in the production of other goods and services, thereby combining various resources effectively. For instance, in a manufacturing setting, capital goods would include the machines used in the production line, which help transform raw materials (another type of economic resource) into finished products. They are essential in increasing efficiency and productivity within a business, making them a vital part of the economic framework. Natural resources, while critical in the production process, refer specifically to raw materials derived from the Earth, such as minerals, water, and forests. They do not combine other resources themselves but rather serve as the foundational inputs that capital goods help process. Human resources pertain to the labor force and the skills, knowledge, and experience that workers bring to the production process. This resource is more about the people who operate machinery and manage production rather than the items that combine other resources. Nonrenewable resources include resources that do not replenish naturally or take a very long time to do so, like fossil fuels. While they play a role in production

The correct answer is capital goods. Capital goods refer to the physical assets that a business uses in the production process to manufacture products and services that consumers will later use. These goods are typically durable items like machinery, tools, buildings, and equipment that aid in the production of other goods and services, thereby combining various resources effectively.

For instance, in a manufacturing setting, capital goods would include the machines used in the production line, which help transform raw materials (another type of economic resource) into finished products. They are essential in increasing efficiency and productivity within a business, making them a vital part of the economic framework.

Natural resources, while critical in the production process, refer specifically to raw materials derived from the Earth, such as minerals, water, and forests. They do not combine other resources themselves but rather serve as the foundational inputs that capital goods help process.

Human resources pertain to the labor force and the skills, knowledge, and experience that workers bring to the production process. This resource is more about the people who operate machinery and manage production rather than the items that combine other resources.

Nonrenewable resources include resources that do not replenish naturally or take a very long time to do so, like fossil fuels. While they play a role in production