1. Econ. Essentials #4 Answer this question: What is economics?
Factors of Production
Answer this question:
What is economics?

2. Resources
Anything used to make something ppl want or need

3. What will you do for dinner?
In your house you have…..
Eggs
Flour
Cheese
Bread
Sugar
Tomatoes
Banana
$15
What will you do for dinner?

4. Factors of Production or Productive Resources – anything used to make a product
Natural Resources
Product that comes from nature / earth
EX: flour, rain, corn, gold, wood

5. What natural resources does California have?

6. Types of Natural Resources
Renewable Resource: can be used indefinitely (if used appropriately)
Lumber, water
Exhaustible Resource: limited amounts
Oil, coal

7. Is a gas a want or a need?

8. 2. Human Resources: Human effort that goes into making a product
Labor: physical and mental effort
Earn a wage for their effort
Requires time

9. Entrepreneur: person who wants to earn a profit by taking a risk on a new business
Could suffer a loss

10. Why would someone choose to become an entrepreneur?

11. 3. Capital Resources Any human creation used to make a product
EX: truck, tool, building, machines, technology

12. Econ. Ess. #5: Resources @ Work
For each of these, list all of the factors of production required to make the product.
A. Natural Resources –
B. Human Resources –
C. Capital Resources -
Dress
Pizza
Desk
Book
Math homework

13. Part B: Answer the following:
6. What resources is the U.S. rich in? 7. What resources do China and Saudi Arabia have? 7. If a country today is rich in natural resources such as cotton, but can’t produce food, what can this country do?