Economic Resource Activity Work with your partner, do all the work on the slides. If it asks a question, think about how you would respond.

Read the following information Economists, or “experts in economy,” have long recognized three distinct types of economic resources that people use to create the things they want. RESOURCES are considered “supplies” that are used in order to help society function properly The 3 distinct types of these resources that started out in ancient civilizations are Natural resources Human resources Capital resources Each resource plays a unique role in the production of goods. We still categorize these types of resources today. So, how can we recognize these 3 types?

Natural Resources Natural resources are defined as everything in the universe that is not created by human beings. Air, sunlight, forests, earth, water and minerals are all classified as natural resources and these are resources that people can use. Every tangible good, or goods we can see and touch, is made up of the raw materials that come from nature -- and because all people (and other living things) have material needs for survival, everyone must have access to some natural resources in order to live. Consider a simple product like a can of chicken noodle soup. What natural resources were used to produce it? The chickens, vegetables, and spices are the result of crops and livestock grown on rich farmland. The water is extracted from wells that were filled by rain. Aluminum was extracted from the ground and used to produce the can. But it takes more than just natural resources to make a can of soup. Read on to see how the other economic resources play their part.

Human Resources LABOR WEALTH GOODS & SERVICES Human resources are the people who make and sell the products. To make the gifts of nature satisfy our needs and desires, human beings must do something with the natural resources. They must exert themselves, and this human exertion in production is called labor. Everything that people do, to convert natural opportunities into human satisfactions -- whether it involves the exertion of brawn, or brains, or both -- is labor, to the economist. When natural resources are worked up by labor into tangible goods, which satisfy human desires and have exchange value, we call those goods Wealth. When labor satisfies desires directly, without providing a material good, we call that "Services.” Economists say that labor provides the economy with "goods and services". LABOR WEALTH GOODS & SERVICES

Let's go back to our can of chicken noodle soup. Many people, or human resources, are need to complete the work required to produce the product. Farmers raise the livestock and crops. Factory workers and managers use Equipment designed by engineers and manufactured by other businesses to process the food. Truck drivers, salespeople, advertisers, and grocery store employees are involved in producing the product and making it the product and making it available to consumers for purchase

Tools, equipment, buildings, machinery Capital Resources When some of the wealth is used to produce more wealth, economists refer to it as capital. A hammer, a screwdriver, and a saw are used by a carpenter to make a table. This table has exchange value. The truck which delivers the table to a retail store, the hammer and other tools -- and even the cash register -- are all forms of capital. Capital resources increase labor's ability to produce wealth (and services too). So think of capital resources as goods that are produced and used to make the OTHER goods and services – not natural and not human! CAPITAL Tools, equipment, buildings, machinery

How do capital resources help make our can of chicken noodle soup? Farmers use tractors and other equipment to plant and harvest crops, and even to feed livestock more efficiently. Truck drivers wouldn't get very far without their trucks, and salespeople need cars, phones, computers and other devices to make their sales. Grocery store employees need shelves and label makers to display the soup and tell people how much it costs. So, you can see, it takes all of the economic resources to produce the products that we all take for granted.

Natural Resource Capital Resource Human Resource Mixture ACTIVITY: Reflect on the differences between natural, capital and human resources. Arrange the pictures into the proper categories as you collaborate with your partner. If you put one in “mixed” add a text box telling the mix. Natural Resource Capital Resource Human Resource Mixture

Based on your research and reading create a mini-poster that… Explain how the need and want for resources can cause conflict, compromise and negotiation and impact economic development. How do the availability of resources affect economic choices? How do economic choices increase or decrease a person’s quality of life?