Goods and Services Goods = physical objects Services = actions or activities that one person performs for another
Land All natural resources (materials found in nature) used to produce goods and services.
Labor The effort a person devotes to a task for which the person is paid.
Capital Any human-made resource used to produce other goods and services There are two types: physical and human
Physical Capital Human-made objects used to create other goods and services Examples include buildings, machinery, tools and equipment
Human Capital Knowledge and skills a worker gains through education and experience
Factors of Production The resources that are used to make all goods and services Economists identify Four Factors of Production: Land Labor Capital (Physical and Human)
On the bottom half of your paper, complete this task Quiz Time! On the bottom of your piece of paper, number 1-7 and write land, labor or capital for each term/image that is presented
Land Labor or Capital? #1) Trees
Land Labor or Capital? #2) Computers
Land Labor or Capital? #3) Waste Treatment Facility
Land Labor or Capital? #4) A river with happy fishes
Land Labor or Capital? #5) A pro wrestler (Randy the Macho Man Savage and Miss Elizabeth)
Land Labor or Capital? #6) Engineers
Land Labor or Capital? #7) Robots
Chocolate Chip Cookies Partner Activity Imagine an alien from Mars just arrives on earth and has developed a taste for Chocolate Chip Cookies Make an extensive list of EVERYTHING needed to produce chocolate chip cookies. Label each thing you listed as one of the four factors of production.
Chocolate Chip Cookies Partner Activity
McDonald’s French Fries Partner Activity Make an extensive list of EVERYTHING needed to produce McDonald’s French Fries Label each thing you listed as one of the four factors of production.
Choose a product that you use frequently Choose a product that you use frequently. Write a paragraph in which you explain the production of this product. Specifically identify each of the four factors of production