Which term refers to man-made resources invested in goods or services?

Prepare for the SQA Higher Business Management Exam. Enhance your skills with dynamic flashcards and practice questions. Explore hints and explanations to ace your exam!

The term that refers to man-made resources invested in goods or services is capital. In the context of economics and business, capital encompasses the tools, equipment, and facilities that businesses use to produce goods or provide services. This includes machinery, buildings, and even financial resources that are used to create products or facilitate operations.

Understanding capital is crucial because it represents a significant factor in the production process, acting as a bridge between raw materials (land) and labor to create finished goods. This investment in capital can increase productivity and efficiency, ultimately leading to greater profitability for a business.

In contrast, terms like labor emphasize human effort; goods relate directly to the products produced; and land refers to natural resources essential for production. Each of these plays a distinct role in the production process, but capital specifically highlights the man-made assets that support and enhance that process.

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