Chapter 3 Productive Resources Productive Resources - is made up of four ( 4) things 1. Human resources - workers, labor, skills 2. Natural Resources - forests, fish, minerals, wind 3. Capital Resources - tools, factories, machines 4. The Entrepreneur - self employed business owner

Human Resources - is LABOR which means the services provided by workers ( both manual and non- manual) to produce goods and services. (ex. laborers, doctors, teachers, carpenters) Production depends on four areas: 1. Health -the healthier and longer people live, the more productive people ( and so societies) are. 2. Education - the more education people have the more productive people tend to be. Education allows people to have more general knowledge and are more easily trained. GuineaWormEradication.html

3. Willingness to work - work attitudes are important. Canadians tend to have a strong belief in work and values hard workers. This in turn makes them productive workers. ( Ex. people in Canada who don’t want to or can’t work tend to be looked down upon.) - Canadians value their own work. They take pride in their job and how it is done. Not all countries are the same. ( Ex. Italy and Greece are famous for their inefficiency, the former Soviet Union was the same) % of all Canadians work. 4. Population Size - The size and age of a countries population affects production. The more people you have the more resources that are available. The study of population growth and its effect on the economy is called DEMOGRAPHICS.

Natural Resources - Are all resources that occur in nature, have value and may be used in production. ( Ex. minerals, forests, fish, water, wind, land) Canada has a wide and extensive supply of natural resources. Natural resources ARE limited and abuse of these resources can lead to lack of production. Ex. The closure of the Newfoundland cod fishery, threat of closure of the tuna industry. Sustainable agriculture / forestry / fishing - using the resource in a responsible way without depleting the resource.

Capital Resources - are goods that are used in the production of other goods and services. Ex. Dentists drill is a capital good. A Grain Combine is a capital good. A trumpet is a capital good for a professional musician. Capital goods require resources just the same as food production requires resources. All resources are limited so we need to find a balance. ( We can’t produce cars all the time if there is not enough food to feed people.) This brings us back to opportunity cost. The cost of producing food is that there is less time / people/ resources to produce tools. Producing new items gives jobs and saves time by letting us work more efficiently in the future. Therefore, economies try to find a balance in how their resources are used or divided up.