It is possible to substitute natural capital with human-made capital and vice-versa to
produce a desired level of output.

Question

It is possible to substitute natural capital with human-made capital and vice-versa to
 produce a desired level of output.

Quizplus · Accepted Answer

Natural capital and human-made capital are both factors of production and can be substituted for each other to produce a desired level of output. For example, a factory can use natural resources such as wood to produce furniture or use human-made machinery to produce the same output. However, natural capital is finite and can be depleted, unlike human-made capital, which can be replaced or upgraded.

It Is Possible to Substitute Natural Capital with Human-Made Capital