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

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

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

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

5. Physical Capital
Human-made objects used to create other goods and services
Examples include buildings, machinery, tools and equipment

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

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

8. On the bottom half of your paper, complete this task
Quiz Time!
On the bottom of your piece of paper, number and write land, labor or capital for each term/image that is presented

9. Land Labor or Capital?
#1) Trees

10. Land Labor or Capital?
#2) Computers

11. Land Labor or Capital?
#3) Waste Treatment Facility

12. Land Labor or Capital?
#4) A river with happy fishes

13. Land Labor or Capital? #5) A pro wrestler
(Randy the Macho Man Savage and Miss Elizabeth)

14. Land Labor or Capital?
#6) Engineers

15. Land Labor or Capital?
#7) Robots

16. 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.

17. Chocolate Chip Cookies Partner Activity

18. McDonald’s French Fries Partner Activity
Make an extensive list of EVERYTHING needed to produce McDonald’s French Fries
Label each thing you listed as one of the four factors of production.

19. 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