DECA Hospitality and Tourism Cluster Practice Exam

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

1. Nonrenewable resources

2. Natural resources

3. Capital goods

4. Human resources

The correct answer is: Human resources

The correct answer is capital goods. Capital goods refer to the assets a company uses in the production process to manufacture products and services that consumers will later use. These include buildings, machinery, tools, and equipment. Capital goods are significant because they combine other resources—like labor (from human resources) and natural resources (like raw materials)—to create finished products. This functional aspect of capital goods highlights their role in enhancing productivity and efficiency in the economy. Human resources, while essential, specifically refer to the workforce and the skills that individuals bring to an organization. They do not directly combine resources to produce goods and services, but rather, they utilize the capital goods and other resources to facilitate production. Natural resources encompass raw materials that are extracted from the environment, such as minerals, water, and timber, which are fundamental for production but require capital goods and labor to transform them into final products. Nonrenewable resources are types of natural resources that cannot be replenished once they are depleted, such as fossil fuels and minerals. While they are vital for production, like natural resources, they also require capital goods for their extraction and conversion into goods and services. Thus, capital goods distinctly represent the economic resource that integrates other resources to generate products and services within