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Title: The factors of production Post by: pl6 on Feb 8, 2021 Describe the distinction between tangible and intangible productive resources and explain why they are the true source of the prosperity of a country.
Title: Re: The factors of production Post by: Famwam on Feb 8, 2021 Examples of tangible products are cars, food, or any other commodity you can think of (i.e. wood, milk, metal, etc.) -- essentially anything you can touch. Intangible products are services provided by doctors, lawyers, other online services like Netflix. All productive goods can be bought and sold.
Investors put money into other tangible assets. For example, financial markets make it possible to invest in gold, silver, and other precious metals, or other commodities like sugar, cocoa, coffee, orange juice, oil, and natural gas. The return on these investments derives from the saver’s hope of buying low, selling high, and receiving a capital gain. This drives growth in the economy. |