Leaving class today, you decide to start an economics tutoring business. Your first step is to get the two categories of capital. Next you need to obtain the other factors of production. Specifically, what do you need in terms of land, labor, and capital.

My Ans: Physical capital could be the building where the tutoring class takes place. Human capital would be the knowledge I gain by studying in the classroom.

I don't get what I should write in terms of land and labor??? Please help!!!

Hummm

Human capital is what tutoring business offers to produce; it is the product being sold.

When I hear "capital" I generally think of two types: physical and financial. Physical capital are the physical items needed. You mentioned the building. Other items include furniture including desks for students to sit, computers to do the analyses, etc. In general, any man-made item you could touch.
Financial capital is generally cash or a line of credit. This is needed to pay the myriad of startup and operating expenses.

Labor is the people you need to hire to run the business. Be sure to include the work provided by you, the owner. (Sometimes, hiring labor, especially specialized people such as teachers could be described as obtaining human capital.)

Land is a generic term for any kind of natural resource. Probably not much in the tutoring business. Perhaps a playground or an apple tree for stundents to sit under and ponder the meanings of life.

I hope this helps.

thank you so much...it really did help!!!

wow really shocked at this ?tion is right out the book hmmm not alone listen to T.I no mercey all she wrote

lol john marshall fb follow hahah

naw but i need a tutor while i listen to T.I bigger picture

To obtain the other factors of production, you will need land and labor.

In terms of land, you might consider the physical location and space for your tutoring business. This could include finding or renting a suitable place for conducting your classes, such as a dedicated room or a small office space.

Regarding labor, as the business owner and tutor, you will initially need to rely on your own labor. This encompasses all the work you will do, from planning and organizing lessons to teaching and managing the business operations. At this stage, you might not require any additional employees or staff members. However, as your business grows, you might consider hiring other tutors or administrative support in order to scale your operations and meet the demands of your students.

In summary, in addition to the two categories of capital (physical and human), you will need to consider the aspects of land (physical location and space) and labor (your own work) for your economics tutoring business.