1. Factors of Production (Factor Resources)
What is required to make goods and services in an economic system?
Also known as the “means of production”

2. Goods and Services Goods = physical objects
Services = actions or activities that one person performs for another

3. Review: List all the Goods and Services you can think of in our economy

4. Factors of Production
The resources that are used to make all goods and services
Economists identify Three Factors of Production: Land, Labor and Capital (Physical and Human)

5. Land
All natural resources (materials found in nature) used to produce goods and services.

6. Labor
The effort a person devotes to a task for which the person is paid.

7. Capital
Any human-made resource used to produce other goods and services
There are two types: physical and human

8. Physical Capital
Human-made objects used to create other goods and services

9. Human Capital
Knowledge and skills a worker gains through education and experience

10. Capital- ism
An economic system in which investment in and ownership of the means of production, distribution, and exchange of wealth is made by private individuals and corporations
This exchange is done in a “free market.” Also known as the free enterprise system.

12. Capital- ist A person who has capital invested in business enterprises
An advocate of capitalism
A very wealthy person

14. Chocolate Chip Cookies Partner Activity
Imagine an alien from Mars just arrives on earth and has developed a taste for Chocolate Chip Cookies
Make an extensive list of EVERYTHING needed to produce chocolate chip cookies.
Label each thing you listed as one of the four factors of production.

15. Chocolate Chip Cookies Partner Activity

16. Choose a product that you use frequently
Choose a product that you use frequently. Write a paragraph in which you explain the production of this product. Specifically identify each of the four factors of production