ELABORATE: The Four Factors of Production 1

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

Introduction Follow the link to watch the video clip. After the clip, you will need to list and explain each of the four factors of production.

The Four Factors of Production 5 Entrepreneurship Capital 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.) 6

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.) 7

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.) 8

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. 9 Entrepreneurs: 1. Take the Initiative 2. Innovate 3. Assume the risk So they can get PROFITS.

10 The Four Factors of Production

1. Natural Resources- Materials from the earth or nature 2. Labor- people doing jobs 3. Capital- objects and goods needed to do a job 4. Entrepreneur- the owner who takes the risks and makes the profits The Four Factors of Production

1.Watch the video showing how they make Lays Potato Chips. 2.When it finishes, brainstorm a list of at least twenty things that were necessary to produce the chips Task:

Natural ResourcesLabor CapitalEntrepreneur You Need 4 Colors

3.Using the definitions for each of the four factors of production, classify the items you brainstormed into the 4 Factors of Production. 4. Color code the item and write it in its proper place on the chart. 14 Task:

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. 18 Task:

Where did you place the cards? Which did you group together? Why? 19 Think About It:

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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 service d) Quaternary Industry- Jobs that study and conduct research 24

25 Think About It: Choose one of the following industries and think of examples of each type for that field. 1. Music Industry 2. Cattle Industry 3. Oil and Gas Industry 4. Space Industry