What is the Resource?
A resource is anything that is utilised in the creation of goods or services. Economists have recognised five different categories of resources that are employed in the manufacturing process. These are the followings:
1. Labor Resources
2. Capital Resources
3. Land/Natural Resources
4. Entrepreneurship Resources
These resources are defined as follows:
1. Labor: Labor is defined as the time spent by humans in the production of commodities and services.
2. Capital: Capital can be described as anything made that lasts a long time and is utilised to make additional products.
3. Natural Resource: It refers to the materials that are found in nature and Land is a natural resource as well.
4. Entrepreneurship: Entrepreneurship is defined as the capacity and desire to integrate other resources, such as labour, capital, and natural resources, into a profitable company.
Types of Capital
There are two fundamental categories in which Capital can be classified:
1. Physical Capital
2. Human Capital
1. Physical Capital: Physical commodities such as machinery, equipment, and factories make up a portion of the capital stock.
2. Human Capital: This refers to the labour force's skills and training.
As a result, we may conclude that organisations have two primary inputs:
1. Capital 2. Labor