Labor

We may not think of labor as a resource, and of course it differs from the other two categories, since labor is directed human action and thus requires that the human being have some motivation. (Money is one possible motivation, of course, and a common one). Land does not require motivation.

But, from several points of view, labor is the most important resource. From the point of view of cost, it is quite important. In the American economy, labor costs amount to something between two-thirds and three-quarters of costs (net of raw materials). Labor is also important to most of us because it is the resource from which we expect to get our living.

Capital