For each of the following items, decide whether it is a natural resource (N), human resource (H), or capital good (C). In the space provided, indicate how each particular resource could become limited and how a business might respond to a shortage of that item. N, H, or CEconomic ResourceHow Could the Resource Become Limited

Natural resource - Land

Human resource - Labour

Capital good - Machine

Explanation:

An example of a natural resource is land, an example of human resource is labour, while an example of capital good is machine.

As industries continue to grow, the population in will continue to grow as well, either through increased migration or higher birth rate resulting from better economic fortunes. This population increase in population will put pressure on available resources of land, labour and machine. This will in turn cause a reduction in the rate of industrial expansion and growth, thereby slowing down economic activities. To respond to this, industries will have to make backward movement into the outskirts, where there is abundance in supply of factors of production (land, labour and machine).

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