1. The resources used to produce goods and services
Factors of Production
The resources used to produce goods and services

2. Factors of Production
Question: How do people use limited resources to satisfy unlimited wants?
Answer: Society uses those resources to produce goods and services that satisfy the wants.

3. sometimes called Factor Inputs of Production
Outputs
Factors of Production
sometimes called Factor Inputs of Production
Land
Labor
Capital
Physical Capital
Human Capital
Entrepreneurship
Goods or Services

4. 3 Criteria for Physical Capital
Factors of Production
Land
Natural Resources
Labor
Man Hours
Capital
Physical Capital
equipment, tools, machinery
Human Capital
skills, training & education of the worker
Entrepreneurship
Risk Taker
3 Criteria for Physical Capital
It has been produced itself
It is long-lasting
It is used in the production of other goods & services