Mr. smith owns his own landscaping business. he has an associate's degree in landscaping from a technical college. he has a truck with trailer, a riding lawnmower, edger, weed eater, etc. he also has three employees, mark, dru, and ed.

which statement is true?
a) mark, dru, and ed are labor.
b) mr. smith does not own any capital.
c) mr. smith's degree represents labor.
d) the riding lawnmower is human capital.

The correct answer is A) Mark, Dru, and Ed are labor

Explanation:

In production, there are four main factors: labor, capital, land, and enterprise. In this way, labor refers to the workers and the task they perform, this in the case presented includes Mark, Dru, and Ed. Additionally, capital represents machines and elements necessary for the process, this means, in this case, the capital is the truck, edger, weed eater, etc. On the other hand, the land represents the natural resources used, while the enterprise is represented by Mr. Smith because he was the one that created the business and uses the other three factors to make a profit. According to this, the true statement is "Mark, Drue and Ed are labor" because they are the employees or workers that use the capital, and land to make a profit for the business of Mr. Smith.

The correct answer is A. Mark, Dru, and Ed are labor.

Explanation:

Let's check the other resources described in Mr. Smith's landscaping business.

1. Mr. Smith is an entrepreneur

2. Mr. Smith's degree in landscaping is part of entrepreneur's education. That's why C is incorrect.

3. Truck with trailer, riding lawnmower, edger, weed eater are capital because they are goods necessary to provide customers with the landscaping services. That's why B and D are incorrect.

4. And finally, Mark, Dru and Ed are labor.

it is a better alternative