Factors of Production

Factors of Production

Four Factors of Production

We use four basic resources to satisfy our needs and wants known as
factors of production.

Four Factors of Production

Land – this refers to all natural resources used to produce goods and
services. This includes crops that are grown on land, minerals that are
mined from land and rent that is paid to an owner of land for its use.

Multiple Select

What would be considered land? (Hint: There is more than one answer)

• water

• factory

• electricity

• copper

Four Factors of Production

Labor – this is the effort that an individual person puts into making a
good or service. For this effort the person is paid a wage.

Multiple Choice

As a student, are you considered a laborer since you complete work at school?

• Yes, we do so much!

• Sort of, it's kind of weird

• No, we do not get paid to work at school

• What's a laborer?

Four Factors of Production

Capital – this is anything that is used to produce other goods and
services. If you make cars you need machines to make the metal that is
used in the cars. It is also the truck that drives the cars to the dealer who
sells them, and it is the building that the cars are made in.

Multiple Choice

Which one would not be considered capital when making a car

• metal

• delivery truck

• factory

• gas

Four Factors of Production

Entrepreneurs – risk-taking individuals in search of profit. They are
often thought of being the driving force in an economy because they are
the people who start new businesses or bring new products to the market.

Open Ended

Name an entrepreneur (ex. Jeff Bezos is the founder of Amazon)

Goods and Services

A Service Is…..

A Good Is…..

a physical thing
you can hold

is something that
gets used up right
after it is purchased

Open Ended

Give an example for both a good and service

What are two reasons we study economic?

1. We want to be good consumers. Since our resources are limited we
have to make choices.

2. We also study economics to be good citizens. Economics affects us
as a citizen through our voting decisions.

How does economics play an important role in our

lives?

•We want to have good information as consumers to make sure we
spend our limited resources in a good way.

•As a citizen we want to make sure the government is spending money
in a way we agree with.

•If we don’t agree with the government, then we can exercise our right
as a citizen and vote for change.