Factors of Production

Today’s Learning Target: Identify and explain the four factors of production. Describe the significance of an entrepreneur. May require more than one slide

Do Now: List everything you can think of that is involved in the production of this pencil…

In pairs: Create categories for each item on your list.

Factors of Production Capital Land Physical capital     Any human-made resource used to produce other goods and services.  Includes: the equipment, tools, machinery, new technology, factories and buildings.  Human capital The knowledge and skills a worker gains through education and experience.  A college degree, training, on-the-job experience are all examples of human capital. Land Land includes all natural resources, minerals and other raw materials.   These resources all tend to be scarce. Labor Labor is the effort that a person devotes to a task for which that person is paid. Entrepreneur Entrepreneurs are people who organize land, labor, and capital to make goods and services. This individual assumes risk for the business in order to make a profit.

Activity #1 Make four headings: Capital, Entrepreneur, Land, and Labor Activity #1 Make four headings:  Capital, Entrepreneur, Land, and Labor. Place these items under the correct heading:

DIRECTIONS: Use the magazines to make a collage of the 4 factors of production. Capital (Physical and at least one human capital) Land Labor Entrepreneur

The dictionary says an entrepreneur is, "A person who organizes and manages a business, assuming the risk for the sake of profit." In short, an entrepreneur is a businessperson who does these things: Sees an opportunity for making money Makes a plan Starts the business (ASSUMES THE RISK) Manages the business Receives the profit

Some well know entrepreneurs:

You be the entrepreneur: Decide on an opportunity for making money: new product/app or service Name your business/product Make a plan: How will your business work? What will you do? How will you get funding? (MINIMUM OF 10 STEPS WITH DETAILS) What FOP will you need in order for your business to be a success? How will you know when your business is successful? May require more than one slide

Exit Ticket 1-4. List the 4 factors of production. 5. A tractor is an example of what factor of production? 6. The person who combines land, labor, and capital to produce a product is the….

Cost Analysis

Project Schedule and Milestones January 10 Milestone 2 April 10 Milestone 3 July 10 Milestone 4 October 10

Risk Management Plan Risk Probability Impact Owner Mitigation Plan Budget cuts may reduce staff, affecting project scope and schedule Medium High Project Manager See appendix for a phased implementation plan

Quality Management and Performance Measures Define quality management plans How will you monitor and control costs? How will you monitor and control schedule? May require more than one slide

Appendix Reference supplementary materials and resources