In economics, how would you classify coal, oil, and water?

Coal, oil, and water are classified as land or natural resources because they occur naturally in the environment and are used to produce goods and services. Natural resources are materials that are found in nature and can be utilized in the production process or consumed directly. Coal and oil are fossil fuels that serve as energy sources, while water is essential for various purposes, including industrial processes, agriculture, and household use.

The classification stems from the fact that these resources are not created or significantly altered by human intervention, differentiating them from capital resources, which are the tools, machinery, and infrastructure developed through human effort to produce goods and services. Human resources refer to the labor force and the skills or human capital provided by individuals. Thus, the correct categorization of coal, oil, and water as natural resources reflects their inherent value in the economy and their role in production processes.