Microeconomics: Principles, Problems, & Policies, 20th Edition

Published by McGraw-Hill Education
ISBN 10: 0077660811
ISBN 13: 978-0-07766-081-9

Chapter 1 - Limits, Alternatives, and Choices - Discussion Questions: 8

Answer

Money cannot be directly utilized as an input in the production process. It sis only used in the acquisition of the inputs that are directly utilized production. Entrepreneurship offers skills that aid in the organization of resources during the production process. Comparatively, labor comprises the human inputs which are directly utilized in the course of production. Entrepreneurs innovate valuable ideas that are transformed into real businesses. They take a risk by venturing into various business. Furthermore, the entrepreneurs are involved in the running of their companies whereby the coordinate the economic resources.

Work Step by Step

Money is not a physical resource, but rather it is a financial resource. The role that is played by entrepreneurship during production is indirect whereas that played by labor is direct. The entrepreneurs provide skills that are crucial in the coordination of production factors.
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