What are 'economic resources'?
I'm trying to understand what my textbook is saying.
Revenues are "increases in economic resources" which result from the entity's ordinary activities.
Is 'Cash' an economic resource? It should be because when a revenue happens, cash is received.
On a related note, aren't land, building, and other assets also "economic resources"?
- OiyLv 61 month ago
Economic resources are labor and capital, or capital goods. It can be divided into two categories, natural and manipulation or man-made resources. Money is not a resource in economics because it is not capital goods. Revenues are the product of output and price. Output is generated by resources in the production function.