BBI 2O Name:

 There are THREE major economic resources which are the building blocks for all economic activity.  Without them, business cannot function and we would not have access to the goods and services that we enjoy today.  These three resources are also known as the FACTORS OF PRODUCTION.

The factors of production are: a) Natural Resources (Land) b) Human Resources (Labour) c) Capital Resources (Capital) Successful business can manage these three basic resources efficiently and effectively.

The Fender Guitar Manufacturing video helps illustrate all three factors of production. watch?v=bzm7OfuNBcQ Try and list each of the three major economic resources that you see in the video Natural Resources Human Resources Capital Resources

Interdependence: mutually dependent; depending on each other. INTERDEPENDENCE: what do you think this word means? Think about all the factors needed to make a chocolate bar. Complete the chart below List all the factors needed to create a chocolate barWhere do these factors come from? Discussion: What would happen if of one of these factors were used up and are not available (shortage)? What would happen if the more or less of these factors become available on the market?

Economic Systems Economic Questions CapitalismSocialismCommunism What to produce? For who to produce? How to produce it?

Complete the following questions after you have finished your reading. 1. Explain why it takes all three economic resources to create most goods and services provided by business and governments. 2. Name a business and then explain how it is interdependent in its dealings with other businesses. 3. What is an economic system? What are the three basic questions that must be addressed when describing and economic system? Read pages 22 to 27 in The World of Business.