The role of the factors of production in an economic system Objective 9.3 (CE9a) The role of the factors of production in an economic system

People who start new business adventures entrepreneurs People who start new business adventures

Risk is money Reward is profit (money left after expenses are paid) entrepreneurs Risk is money Reward is profit (money left after expenses are paid)

human resources (labor) time, energy, skills, knowledge, and talent brought by people to the production of goods and services

human resources (labor) Since everyone can not do everything well, labor is considered a limited resource

natural resources (land) The raw materials needed to produce goods and services

natural resources (land) soil water, oil, and metals plants and timber animals

natural resources (land) Since many of these can not be replaced, land is considered a limited resource.

Anything produced in an economy that is saved capital resources Anything produced in an economy that is saved to be used to produce other goods and services

machines buildings tools money that is saved capital resources machines buildings tools money that is saved

People who plan and supervise the production of goods and services management People who plan and supervise the production of goods and services

creating goods and services production creating goods and services producer

using goods and services consumption using goods and services consumer

transporting the goods and services from the producer to the consumer distribution transporting the goods and services from the producer to the consumer distributor