“ECONOMICS IS EVERYWHERE!” - Factors of Production

“ECONOMICS IS EVERYWHERE!”

- Factors of Production

Before We Begin:

Terms to Know

• GOODS: Physical articles that have been produced for sale or use.

– Examples: Food, Clothing, Cars

• SERVICES: Work done by someone else for which a consumer, business, or government is willing to pay.

– Examples: Teaching, Gardening, Childcare

Example:

Good:Clock

Service: Teaching

The resources used to make all goods and services!!!

Factors of Production:

C. E. L. L.

LandWater

Forests

Wildlife

LaborTime

Effort

Talent

CapitalTools

Machines

Equipment

Physical & Human

EntrepreneursVision

Energy

Organization

Uses Other 3 Resources

Goods & Services

Example:Land:Trees

(Paper)

Labor: Time Teaching

Physical Capital: Desks, Books

Human Capital:

Education

Scarce Resources =

Scarce Goods & Services!

Do You Have What it Takes to be an Entrepreneur?

The Real Sweet Martha

Pencil and Resources

Video on Pencil

Four Factors of Production

Combination of productive resources = advanced goods and services