1. Resources Created by Danielle Ruff Cartersville Elementary School Third Grade

2. Natural Resources A pencil is made from natural resources ◦Wood ◦graphite Natural resources are things from Earth that people can use.

3. Natural Resources Every Natural resource starts out as part of Earth. ◦Land ◦Water ◦Rocks The wood from pencil is made from trees. A tree is a natural resource. All products we use start as natural resources.

4. Natural Resources Think about riding to school on the bus. The bus is made of metal, which is mined from the ground. The tires are made of rubber, which comes from trees. The gasoline for the bus is created from oil, which comes out of the ground, too.

5. Human Resources Pencils don’t just grow on trees! Someone has to make pencils. Human resources are people working to make goods and services. To work, people need skills and training to do their job. They need education and experience, too. All of these are human resources because they are needed to make goods and services.

6. Human Resources The human resources that go into making a pencil include the loggers that cut the trees for wood. Human resources are also the people who put the graphite and erasers into the wood. They are the people who sell the pencils to stores and to you. All of these people earn money. They exchange their labor, or work, for wages.

7. Capital Resources People need another kind of resources to make goods and services. They need tools to do a job, buildings to work in, and money to buy those tools. All of these are capital resources, resources that are used to make goods and services.

8. CapitalResources To make the pencil, the logger needs a saw to cut trees. The worker in the pencil factory needs a machine to cut wood into the right size. Other workers use a machine to put the graphite and eraser into the wood. Other workers use the machines, and the factory itself are capital resources.

9. Capital Resources The truck that carries the pencils to a store is a capital resource. The money used to buy wood and machinery and to pay the workers is also a capital resource.

10. Creating Goods and Services Some has to organize resources in such a way that make you want to buy them. Entrepreneurs are people who organize other resources to make goods and services.

11. Entrepreneur Entrepreneurship is a characteristic of people who take the risk to organize resources. The most common way of organizing resources is to start a business. It is a risk to start a business because the business may not make money.

12. A pencil entrepreneur must use the capital resource of money to buy other capital resources such as machinery and a factory. Money is also needed to buy the natural resources used to make the pencil. The entrepreneur must use money to pay wages to all the people who work for the pencil company. That money will return to the entrepreneur when he or she sells a lot of pencils!