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LAND- EVERYTHING THAT COMES FROM THE EARTH FOR PRODUCTION Ex.) OIL, LUMBER, WATER, ETC.

LAND- EVERYTHING THAT COMES FROM THE EARTH FOR PRODUCTION Ex.) OIL, LUMBER, WATER, ETC. LABOR- HUMAN EFFORT, TIME & TALENT IN PRODUCING GOODS & SERVICES Ex.) DOCTORS, FACTORY WORKERS, ETC. CAPITAL- RESOURCES MADE & USED BY PEOPLE TO PRODUCE & DIST. GOODS Ex.) FACTORIES, MACHINES, ETC.

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LAND- EVERYTHING THAT COMES FROM THE EARTH FOR PRODUCTION Ex.) OIL, LUMBER, WATER, ETC.

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  1. LAND- EVERYTHING THAT COMES FROM THE EARTH FOR PRODUCTION Ex.) OIL, LUMBER, WATER, ETC.

  2. LABOR- HUMAN EFFORT, TIME & TALENT IN PRODUCING GOODS & SERVICES Ex.) DOCTORS, FACTORY WORKERS, ETC.

  3. CAPITAL- RESOURCES MADE & USED BY PEOPLE TO PRODUCE & DIST. GOODS Ex.) FACTORIES, MACHINES, ETC.

  4. ENTREPRENEURSHIP- VISION, SKILL, INGENUITY, WILLINGNESS TO TAKE RISKS, NEEDED TO START & RUN A NEW BUSINESS Ex.) ANYONE WHO STARTS A BUSINESS

  5. You decide to start a hotdog stand as a business. List the factors of production you’ll need in order to have a successful business.

  6. OPPORTUNITY COST: the value of the next best alternative, or what you give up by choosing one alternative over another • In life, we are forced to make CHOICES. For every decision you make, you are giving something up. This is called a TRADE-OFF. When we assign a value to this, we call it OPPORTUNITY COST. It’s like when you’re taking a road trip. You have to make a choice: SCENIC ROUTE HIGHWAY • What is your opportunity cost? • What is your trade-off?

  7. You have $2,500 to purchase a car. Will you buy an old car or use the money as a down payment on a new car? Fill in the decision-making grid below. What is your decision?

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