1. Natural Resources, Human Capital, Capital Goods, & Entrepreneurship
Factors of
Economic
Growth
Natural Resources, Human Capital, Capital Goods, & Entrepreneurship

2. Gross Domestic Product – Page 16
Directions:
Cut out note cards & GDP definition
First glue down GDP definition, then glue on flap into notebook

3. GDP
GDP is the total value of all the goods and services produced in that country in one year.
It measures how rich or poor a country is.
It shows if the country’s economy is getting better or worse.
Raising the GDP of a country can improve the country’s standard of living.

4. Factors of Production
There are 4 factors of production that influence economic growth within a country:
Natural Resources available
Investment in Human Capital
Investment in Capital Goods
Entrepreneurship
The presence or absence of these 4 factors determine the country’s Gross Domestic Product (GDP) for the year.

5. Natural Resources
All of the things found in or on the earth; “gifts of nature”.
All resources are limited.
Examples: land, water, sun, plants, time, air, minerals, oil, etc.

6. Human Capital
This is all of the skills, talents, education, and abilities that human workers possess---and the value that they bring to the marketplace.
Examples: computer/reading/writing/math skills, talents in music/sports/acting, ability to follow directions, ability to serve as group leader & cooperate with group members
A country’s Literacy Rate impacts Human Capital (the percent of the population over 15 that can read/write).

7. Capital Goods
This is all of the goods that are produced in the country and then used to make other goods & services.
Examples: tools, equipment, factories, technology, computers, lumber, machinery, etc.

8. Entrepreneurship
People who provide the money to start and operate a business are called entrepreneurs.
These people risk their own money and time because they believe their business ideas will make a profit.
They bring together natural, human, and capital resources to produce foods or services to be provided by their businesses.

9. Standard of Living The level of wealth and material comfort available
The higher a country’s GDP, the better standard of living for the people within the country.
In order for a country to have an increasing GDP, it must invest in human capital through education & training, and it must produce goods that have value to be sold within the country or exported.

10. Literacy Rate A literate person is one who can read and write.
Being literate is a major factor in whether a person can get a job and be successful in the workplace.
Literacy rate is the percentage of a country’s population over the age of 15 that can read and write.
The United States has a very high literacy rate.
About 99% of Americans are literate.

11. Economic Impact
Countries with high literacy rates are generally wealthier.
They can compete in the world economy.
Having a high literacy rate is important to the success of the people in a country.
People who can read get better jobs, earn more money, and can afford to buy better things.
They can afford housing, food, healthcare, & clothing for their families.

12. High Literacy Rate = High Standard of Living
The standard of living (economic level of the people in the country) is often higher in countries where the literacy rate is high.
High Literacy Rate = High Standard of Living

13. Standard of Living
This measures how well-off the people are in a country.
Housing, food, health care, educational opportunities, and income can be part of the standard of living.
Basically: what it costs a family to live

14. Improving Literacy Rate
The goal of every country is to have a 100% literacy rate among its people.
One reason that many people cannot read/write is that their communities cannot afford to pay for teachers or schools.
Many governments, missionaries, & aid groups come to the poorest countries to assist the people in educating their children

16. Literacy Rate & Standard of Living – Page 17
Directions:
Cut out notes & glue into IN

17. Which Capital? – Page 18 Directions:
Cut out pockets, glue into IN (make sure to put glue on the small side of the solid line
Cut out descriptions, put them in the correct pocket