Factors of Production

LAND This includes naturally occurring goods such as soil and minerals. These are natural resources. They are not man made! Some of these resources are renewable (soil, trees) and some are non-renewable (oil, coal).

LABOR This includes the human effort that is used in production. Labor resources include the people who produce, make, or work in order to create products or provide services.

CAPITAL This includes the goods which are used in the production of other goods, such as machinery, tools and buildings.

Entrepreneurship This is the ability to organize and combine the factors of production. This can include managers, organizing and planning in a company. For example, Bill Gates invented Microsoft and Steve Jobs invented Apple.

Play Dough Activity On the bottom of your half sheet of paper choose one natural resource to walk through the factors of production. Create an explanation and image for each step. Use the Play Dough to create a model of each of the steps.