Which statement is true?
A)Entrepreneurial ability is in short supply in the U.S.
B)Land,labor and capital may be considered passive resources.
C)The concept of opportunity cost is irrelevant when there is scarcity.
D)None of these statements are true.

Question

Quizplus · Accepted Answer

Land, labor, and capital are considered passive resources because they do not produce anything on their own. They require an entrepreneur, or someone with entrepreneurial ability, to combine and manage them in a way that creates value. Option A is incorrect because research shows that entrepreneurial ability is present, but sometimes not utilized due to factors such as lack of access to capital, markets, and education. Option C is incorrect because opportunity cost refers to the value of the next best alternative foregone, and it is always relevant when there is scarcity.

Which Statement Is True