Factors of Production and the Production Possibilities Curve
2.1 Factors of Production
ANSWERS TO TRY IT! PROBLEMS
- An unemployed factory worker could be put to work; he or she counts as labor.
- A college professor is labor.
- The library building on your campus is part of capital.
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.
- An untapped deposit of natural gas is a natural resource. Once extracted and put in a storage tank, natural gas is capital.
- The White House is capital.
- The local power plant is capital.