Answer:
Secondly, labor refers to the human effort used in the production process. This includes both the physical and mental efforts used to produce goods and services. The quantity and quality of labor are critical factors in determining the productivity of an economy. Labor is also essential in the creation of new ideas and innovations, which is critical in today's knowledge-based economy.
Thirdly, capital is the physical resources that are used to produce goods and services. This includes machinery, buildings, tools, and equipment. The level of capital available in an economy is a crucial determinant of its level of economic growth. Investment in capital goods is essential for an economy to maintain and increase its productive capacity.
Step-by-step explanation: