Factors of Production Natural resources – provided by nature that people use to create goods and services Human resources – all human labor required to produce something Includes the planning, studying, and training, as well as the work that is actually required to produce a good or service Capital resources – goods made, not to consume, but to make other goods and services Capital goods – machines and tools Capital services – infrastructure Entrepreneurship – people who bring together and organize all the other productive resources (entrepreneur) Often business owners or managers

Impact of Short Supply Scarcity, or not having enough of something, is the basic problem of economics. If one factor is in short supply, the economy may not be able to fulfill the needs and/or wants of people.

What is Industry? Industry – the organized action of making goods and services for sale

Agricultural Industry Agriculture – the science, art, and business of cultivating soil, producing crops, and raising livestock; farming

Agricultural Industry (cont.) Many different factors influence the kind of agriculture practiced in a particular area. Among these are: climate soil water availability nearness to markets transportation facilities land costs general economic level

Agricultural Industry (cont.) What kinds of agricultural industry do we have in Texas?

Wholesale Industry Wholesale – the sale of goods, usually in large quantities, to retailers Retailers then resale the goods What items do you think are wholesale and sold to retailers to sell to you? Can you think of items you can get that are not wholesale?

Retail Industry Retail – made of individuals and companies engaged in the selling of finished products to end user consumers Second largest industry in the U.S. (responsible for approximately 12% of all U.S. employment) The majority of the revenue in the retail industry is generated by companies that run retail "chains" What do you think is the biggest “chain” retailer in the U.S. and the world?

Manufacturing Industry Manufacturing – the use of machines, tools and labor to produce goods for use or sale Raw materials are transformed into finished goods on a large scale Manufacturing is different under different types of economic systems. In a free market economy, manufacturing is usually directed toward the mass production of products for sale to consumers at a profit. In free market economies, manufacturing occurs under some degree of government regulation.

What service industries can you think of? Service Industry Service – an action provided to businesses and consumers NO goods are produced Largest industry in the world What service industries can you think of?