Question

Lauren owns a bakery. She wants to increase her daily production of baked goods, so she knows she needs to acquire more resources. Which of the following actions would represent an increase in the human capital resource at her bakery?
a. repairing a broken delivery van
b. buying better-quality ingredients
c. increasing employee training
d. purchasing ingredients in bulk
e. moving into a larger space

Answer 1

Answer:

The correct answer is option c.

Explanation:

Resources are of several types. In economics, we classify resources into four types as land, labor, capital, and entrepreneurship. Capital is further classified as physical capital and human capital.  

Human capital is a nontangible, nonphysical asset that is not mentioned on a company's balance sheet.  It is the value of a worker's skills, education, training, experience, health, intelligence, etc.  

In the given example, providing employee training will increase human capital resources for Lauren and it will help her efficiently utilize physical capital.