1. Factors of Production

2. 4 Factors of Production
Def: the resources needed to produce goods and services.
Land
All natural resources that produce goods and services
Cotton, trees, fertile ground…
Labor
Not just physical work.
Human time, effort, talent…

3. Capital
c. Capital
Physical capital – human-made objects used to create goods and/or services.
tools, computers, assembly lines, etc.
Human capital – knowledge and skills obtained by a worker through education and experience.
(Mechanic, artist, specialized doctor, etc.)

4. Entrepreneurship d. Entrepreneurship
the skills used to create new industries, goods, services, etc.
Steve Jobs, Bill Gates, Henry Ford…
Technology – a sub-factor of entrepreneurship. Technology is created from entrepreneurship and innovation.