ELABORATE: The Four Factors of

Production

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Think About It:

1. Imagine you have a chocolate chip cookie 2. Consider all the different things needed to make

this cookie from start to finish- from when things are grown until the package is in your pantry.

3. Make a list and see how many you can think of in my set time limit.

Did you consider...?

Tractors, farmers, chickens, eggs, delivery trucks, printers, cocoa beans, trucks, ovens,

conveyer belt, factory workers, store, cashier, gas station, paper, oil, sugarcane, cows, etc.You get the point… Lots of different parts

come together to produce any product

The Four Factors of Productio

n

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EntrepreneurshipCapital

Labor

Land

Producing goods and services requires the use of resources.

ALL resources can be classified in to one of the Factors of

Production:

The Four Factors of Production

1.Land- All natural resources that are used to produce goods and services. Anything that

comes from “mother nature.”

(Water, Sun, Plants, Oil, Trees, Stone, Animals, etc.)

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The Four Factors of Production

2. Labor- Any effort a person devotes to a task for which that person is paid.

(manual laborers, lawyers, doctors, teachers, waiters, etc.)

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The Four Factors of Production

3. Capital- Any human-made resource that is used to create other goods and

services

(tools, tractors, machinery, buildings, factories, etc.)

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The Four Factors of Production

4. Entrepreneurship- ambitious leaders that

combine the other factors of production to create goods

and services.

EX: Henry Ford, Bill Gates, Inventors, Store and

Business Owners, etc.

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Entrepreneurs:1. Take the Initiative2. Innovate3. Assume the risk

So they can get PROFITS.

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The Four Factors of Production

1. Natural Resources- Materials from the earth or nature

2. Labor- people doing jobs3. Capital-

objects and goods needed to do a job4. Entrepreneur-

the owner who takes the risks and makes the profits

The Four Factors of Production

Think About It:

1. Where have you heard or seen this word before?

2. What do you think it might mean?

An industry is all business activity related to the same

type of good or service.EX: Auto industry

(all businesses related to a car)

Can you name other examples of industries?

There are different levels of jobs within an industry.

Auto Industry

Read through the cards.

Try to figure out where they belong on the chart. Each row

reads left to right and describes the same

idea.14

Task:

Where did you place the cards?

Which did you group together?

Why?15

Think About It:

16

Primary

1st

Takes natural

resources from the earth- like mining,

fishing, and agriculture

Fishing

Secondary

2nd

Makes products using the natural

resources- like construction, factories, and

processing plants

Canning plant processes the

fish

Tertiary

3rd

Provides a service-

like restaurants, supermarkets,

hospitals, schools, and emergency

services

Supermarkets

sell the fish

Quaternary

4th

Gathers and

provides information- like

research and tracking

Barcodes tell

the store when to reorder fish

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Primary

1st

Takes natural

resources from the earth- like mining,

fishing, and agriculture

Fishing

Secondary

2nd

Makes products using the natural

resources- like construction, factories, and

processing plants

Canning plant processes the

fish

Tertiary

3rd

Provides a service-

like restaurants, supermarkets,

hospitals, schools, and emergency

services

Supermarkets

sell the fish

Quaternary

4th

Gathers and

provides information- like

research and tracking

Barcodes tell

the store when to reorder fish

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Primary

1st

Takes natural

resources from the earth- like mining,

fishing, and agriculture

Fishing

Secondary

2nd

Makes products using the natural

resources- like construction, factories, and

processing plants

Canning plant processes the

fish

Tertiary

3rd

Provides a service-

like restaurants, supermarkets,

hospitals, schools, and emergency

services

Supermarkets

sell the fish

Quaternary

4th

Gathers and

provides information- like

research and tracking

Barcodes tell

the store when to reorder fish

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Primary

1st

Takes natural

resources from the earth- like mining,

fishing, and agriculture

Fishing

Secondary

2nd

Makes products using the natural

resources- like construction, factories, and

processing plants

Canning plant processes the

fish

Tertiary

3rd

Provides a service-

like restaurants, supermarkets,

hospitals, schools, and emergency

services

Supermarkets

sell the fish

Quaternary

4th

Gathers and

provides information- like

research and tracking

Barcodes tell

the store when to reorder fish

Types of Industries a) Primary Industry- Businesses that gather the natural

resources needed to make the good b) Secondary Industry- Factories where the good is produced c) Tertiary Industry- Stores and businesses that sell the good or serviced) Quaternary Industry- Jobs that study and conduct research

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Think About It:

Choose one of the following industries and

think of examples of each type for that field.

1. Music Industry2. Cattle Industry

3. Oil and Gas Industry4. Space Industry