Resources Types & Classifying

What is a Resource?  A resource is an input into the production process.  A resource is something you can use  A resource is something you use to satisfy your needs & wants

Types of Resources Resources can be either:  Renewable Can be replaced, regenerated, replenished. (within human lifespan) Once used they can be used again.  Non renewable Not replenished or renewed within a human life span. Once used up there is no more.

Renewable or Non renewable?

Classifying Resources Resources NaturalHuman Man Made

What kind of Resource?

The F.O.P – Factors of Production Resources can be classified further into the factors of production. Resources Natural Land Human Labour Enterprise Man Made Capital

Land All natural resources when used as a factor of production are called land. These resources can be renewable or non Renewable Land includes: Plants, Trees, Animals, Birds, Insects, Air, Sea, Water, Wind, Sun, Minerals, Rocks, Fossil Fuels, Sand etc

Labour Labour is the physical effort in the production Process. Labour includes: Builders, Teachers, Doctors, Dentists, Chefs, Labourers, Mechanics, Cleaners, Freezing Workers, Farmers etc

Capital Man Made resources used to create other goods & services Sometimes called “Producer Goods” Capital does not refer to money in Economics! Can be split into:  Productive Capital – Fixed Assets e.g. Buildings, Machines etc  Circulating Capital – Semi Finished Goods e.g. Nails, Hooks, hinges etc

Entrepreneurship/Enterprise The skills of decision making and risk taking. Management – combines the F.O.P to produce G & S. Innovation – comes up with new ideas Examples of Entrepreneurship include: Mark Ellis, Doc, Steven Tindall, Dick Hubbard, John Key, Dairy Owner/Manager, Bill Gates, Richard Branson, Peter Jackson, etc

Factor Rewards In return for use of the F.O.P each factor “derives” or earns an income. LandRent LabourWages Capital Interest EntrepreneurshipProfit