Added: 6 months ago
From: humberjeff
Views: 2,147
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  • There are only THREE factors of production

    LAND - land and all resources, inc water, air, oars, etc;

    CAPITAL - the result is profit;

    LABOR - the result is wages;

    "entrepreneur" is not a factor. Look at Adam Smith & David Ricardo.

  • You show capital as money, but isn't that wrong? Capital in Economics are human made goods, which are used to produce other goods right?

  • @Philipwestra

    You're right. Here's why I chose to define it more specifically to "money". The video was made for intro to business, so to keep it simple I'm using the definition below:

    "Capital market refers to a market where the financial institutions mobilize the savings of the people and lend them for long term, period for raising new capital in country. Capital Market, in other words, refers to the long term borrowing and lending of capital funds."

  • nice excellent help

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