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Factors of Production and the Production Possibilities Curve

2.1 Factors of Production

ANSWERS TO TRY IT! PROBLEMS

  1. An unemployed factory worker could be put to work; he or she counts as labor.
  2. A college professor is labor.
  3. The library building on your campus is part of capital.
  4. Yellowstone National Park. Those areas of the park left in their natural state are a natural resource. Facilities such as visitors' centers, roads, and campgrounds are capital.
  5. An untapped deposit of natural gas is a natural resource. Once extracted and put in a storage tank, natural gas is capital.
  6. The White House is capital.
  7. The local power plant is capital.