1. and allocation of those resources
Productive Resources
and allocation of those resources

2. Standards SSEF1b: Define and give examples of productive resources
SSEF1c: List a variety of strategies for allocating scarce resources

3. What are Productive Resources?
Anything used to produce goods and services
4 types of Productive Resources. We call them the
“Factors of Production”
Or FOP’s
CELL
Capital, Entrepreneurship, Land, Labor

4. FOP: Land
“Gifts of nature”
Anything that occurs naturally
Examples:

5. FOP: Labor
the physical abilities and time of human beings available to produce goods and services.

6. FOP: Capital
the tools, machines, and skills/knowledge/training of human beings.
Physical Capital – tools, machines, etc.
Human Capital – skills, knowledge, and/or training of individuals.

7. FOP: Entrepreneurship
someone who takes a risk to start a business by bringing together the other three factors of production in an innovative way.

8. Allocating Scarce Resources
Society has to decide how to allocate its scarce resources.
Allocate:
To distribute (according to a plan)

9. Allocation Strategies
Authority
Governments make the decision
Authoritarian governments = use military/police for enforcement of resource allocation.
Rationing of a resource
Supply/Demand
More supply = Lower price
Less supply = Higher Price

10. Allocation Strategies
Random Selection/ (Lottery)
Everyone has an equal chance of getting resource
Inefficient = resources go to those who don’t need it/want it.
Ex: Farm land
First come/First Served
First in line gets the resource:
Concerts
Sporting events
Stores

11. Allocation Strategies
Personal Characteristic
Resources are distributed based on need or merit.
i.e.: Scholarships, Jobs
Contest
Resource go to the person who wins.
i.e.: Race, Academics (valedictorian), Test of knowledge

12. Standards SSEF1b: Define and give examples of productive resources
SSEF1c: List a variety of strategies for allocating scarce resources
List 5 facts that will help you remember this lesson: