ECONOMICS. Factors of Production Notes. What is Economics?. Economics is the study of how people choose to use limited or scarce resources in attempting to satisfy their unlimited wants. An economy is based on a system of economic activity in a country, region, or community.
Factors of Production Notes
An economy is based on a system of economic activity in a country, region, or community.
An economic activity is based on the production [making] and distribution [moving] of goods [what you buy] and services [how you are helped].
Production – making goodsDistribution – moving goodsGoods – items you buyServices – things you do for someone else; how you are helped
Why or why not?
In order to understand economic activity, it is important to look at the factors that are necessary to produce the goods.
Use the graphic organizer to fill in the definitions, examples, and influences of each of the four factors of production.
A natural resourceis anything that is part of the Earth and which people need and value [worth something].
Two categories--- Non-renewable resources like coal, oil, natural gas, iron, salt, etc. and Renewable resources like fish/animals, timber (lumber, wood, trees), plants, soil, etc.
From Science class, can you think of at least 4 more natural resources that would be of value to our lives?
The labor force is the human work force available.
Workers and employees can come from all areas of society, including teenagers, adults, men, women, etc.
In the past, other work force consisted of indentured servants, slaves, prisoners of war, etc.
Capital resourcesinclude the material wealth in the form of money or property/tools used to generate economic wealth
Capital resources include cash, money, bartered items, credit, loans, machinery used in production, etc.
Anentrepreneuris a risk-taking business person; also someone who takes a risk in creating a business or enterprise.
Mark Cuban, owner of the Dallas Mavericks
Ray Kroc, founder of McDonald’s
Steve Jobs, founder of Apple
Bill Gates, owner of Microsoft
Brainstorm ideas and list at
least 2 or 3.
Natural Resources Human Resources
Capital Resources Entrepreneurship
What would a dairy farm owner be a part of in the factors of production?
What would the “dairy milkers” be a part of in the factors of production?
What would the pastureland be a part of in the factors of production?
What would the banker who approves the farm loan be a part of in the factors of production?