Which answer choice correctly identifies and describes the two primary types of capital resources?
Human capital, which refers to the training needed to prepare workers for their roles in production, and resource capital, which is
the resources used to produce finished goods.
Financial capital, which refers to the money used to fund the production of goods, and physical capital, which is the land on which
goods are produced.
Human capital, which refers to the skills and knowledge of people involved in production, and physical capital, which is the tools
and machines used in production.
O Financial capital, which refers to the money used to pay employees involved in production, and resource capital, which is the raw
materials used in the production process.​

Human capital and physical capital are the two main types of capital resources. Human capital is about the skills, knowledge, and health of persons, while physical capital pertains to tangible tools, infrastructure, and equipment used in production.

The two primary types of capital resources are human capital and physical capital. Human capital refers to the skills, knowledge, information, and health of individuals, also acknowledging the adaptive combination of intelligence, quality of labor, education, and experience. On the other hand, physical capital includes the tangible elements used in production, such as tool, equipment, buildings, and infrastructure. It can increase productivity through the quantitative increase (more of the same tools and machines), and qualitative improvement (same amount but more efficient or technologically advanced).

Take an example in the context of a farm: its human capital includes the knowledge and skills of its workers, while the physical capital includes its tractors, land, and the infrastructure like roads and electricity that support its operations.

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The United States and Saudi Arabia engage in trade. The Saudi riyal appreciated significantly compared to the US dollar over the last year. How will this affect the following importers?



Group of answer choices

It will benefit importers in Saudi Arabia because they can purchase the same amount of US goods for fewer riyal than they could one year ago.

It will benefit importers in the United States because they can purchase the same amount of Saudi goods for fewer dollars than they could one year ago.

It will benefit importers in Saudi Arabia because the demand for Saudi goods will have likely have increased among consumers in the United States.

It will benefit importers in the United States because the demand for US goods will have likely have increased among consumers in Saudi Arabia.