4 Types of Resources
Reference Chapter 1.4
in your text for additional information
Resources = what is needed to produce goods and services
Resources = Factors of Production
Economists classify RESOURCES or factors of production in 4
categories1. Land
2. Labor
3. Capital
4. Entrepreneurship
Landincludes all natural resources
LABOR
Capital= produced goods that can be used for further
production• Farm machinery, industrial tools, factories
• Also, commonly, investment money
Entrepreneurship
• The special talent some people have for searching out and developing new ideas
• The special talent for developing new products and new ways of doing things.
But how is an entrepreneur different from an inventor?
Which category of resources identifies these?
• Frida’s work as a secretary• Iron ore• Crop-duster airplane• Computer used to write a book• Comedian telling jokes on tv• Singer in an out-door concert• Teacher• Someone inventing and marketing a new good• Crude Oil• Deep sea oil platform
People need resources so they pay for them.
We can describe that payment by using money.
Monetary payments to Resources:
Monetary payments to Resources:
1. Land Rent
2. Labor Wages
3. Capital Interest
4. Entrepreneurship Profit
Price = the sum of the monetary payments to resources
Let’s Play a Game !!!
• Get side-by-side with your partner so you can see the screen.
• Write both your names on the top of a piece of paper. Include the period.
• Title your paper:Economics is Everywhere
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