Question

as a factor of production, how is capital created?
a. by adding land to entrepreneurship.
b. by adding human labor to land.
c. by removing land from services.
d. by using labor to create services.

Explanation:

Capital, as a factor of production, refers to man-made resources used in production. It is created when human labor is applied to natural resources (land) to produce physical capital goods like tools, machinery, or buildings. Option B aligns with this definition, while other options do not describe the correct process of creating capital.

Answer:

B. By adding human labor to land.