Your College Has Contracted with a Construction Company to Build

question 93

Multiple Choice

Your college has contracted with a construction company to build a new bookstore; in doing so the contractor will use heavy machinery and equipment.How are these items classified?

• A)human resources
• B)current resources
• C)natural resources
• D)capital

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Definitions:

Input

Resources used in the production process, including labor, materials, and capital, to produce goods or services.

Technical Rate

The rate at which technological improvement increases production efficiency, often measured as a percentage increase in output per unit of input.

Variable Factors

inputs in production that can be adjusted in the short term, such as labor and raw materials, contrasted with fixed factors like machinery.

Production Function

An equation or graph showing how output changes with variations in input factors, holding all else constant.