00:01
Today we will be solving problem 9 from chapter 1 of economic principles, problems, and policies.
00:08
So this question asked a few questions about economic resources and how and why they're categorized.
00:15
The first question wants to know why money is not categorized as an economic resource in the same way that capital resources are.
00:23
And this is because capital goods are defined as satisfying wants indirectly.
00:28
And they do this by aiding in the production of consumer goods.
00:33
Money doesn't actually produce anything, and it doesn't satisfy wants indirectly.
00:38
It satisfies them directly.
00:40
And so it's only used to acquire capital goods, so it is not considered an economic resource at all, and it is considered specifically distinct from capital resources.
00:50
The next question asked about entrepreneurial ability and why this economic resource is different from labor.
00:59
Entrepreneurial ability is different than labor because it's a strategic move.
01:04
It combines the other economic resources of labor, land, and capital resources in order to create a good.
01:11
And so unlike labor, the entrepreneur actually makes decisions, innovates, and bears risk...