Describe the four factors of production required for an economic ...

[rayancarla1]

Describe the four factors of production required for an economic system to thrive and create wealth.

Question 2

If Germany exports 100,000 of sauerkraut to Jamaica and purchases 100,000 of Blue Mountain coffee beans from Jamaica, Germany has
 A) an overall favorable balance of trade.
  B) an overall unfavorable balance of trade.
  C) a favorable balance of trade with Jamaica.
  D) neither a favorable nor an unfavorable balance of trade with Jamaica.
  E) an unfavorable balance of trade with Jamaica.

[polinasid]

Answer to Question 1

The four factors of production are natural resources, capital, human resources, and entrepreneurship. Natural Resources include inputs that offer value in their natural state such as land, fresh water, wind, and mineral deposits. Most natural resources must be extracted, purified, or harnessed. Capital includes machines, tools, buildings, information, and technology-synthetic resources a business needs to produce goods or services. Human Resources use the physical, intellectual, and creative inputs of those working within an economy. Entrepreneurship supports the people who assume the risk to own and operate a business. Entrepreneurs are motivated primarily by profit and use their own resources to capitalize on potential not recognized by others. Entrepreneurs must be given the economic freedom to produce. Economic freedom includes freedom of choice, freedom from excess regulation, and freedom from too much taxation.

Answer to Question 2

D

[rayancarla1]

TY

[polinasid]

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