Question

Gloria wants to open her own restaurant. She has already purchased a building and raised enough cash to purchase the furniture, tools, and equipment required. She has also hired waitstaff and some cooks. Howeve, she is unable to find a person who will be able to come up with interesting recipes every day. What type of factor of production is Gloria lacking? A) entrepreneurship b) human capital c)land d) physical capital

Answer 1

The answer is B) human capitol

Answer 2

Answer:

The correct answer is option b.

Explanation:

Gloria is an entrepreneur. She already has physical capital, land, and labor. She needs to find someone who can come up with interesting recipes every day. It appears that she is lacking the human capital.

Human capital can be defined as an intangible asset which includes education, training, and skills of a worker. Even though it is not mentioned on the balance sheet, it has a major impact on productivity.  

Without adequate and high-quality human capital, the available physical capital cannot be efficiently used.