1. Intro terminology

2. The four Factors Of Production “L.L.C.E.”

3. Resources fall into 4 categories Land Labor Capital Entrepreneurship

4. LAND – physical space Natural resources –Renewable and Non-renewable To provide food, clothing, shelter 1. Apple orchard 2. city lot, gasoline 3. city lot

5. Labor Human sweat and skill 1. Apple pickers’ time 2. gas station attendant’s time 3. computer programmer’s time

6. Capital The equipment and structures used to produce goods and services Goods produced in the past, being used in the present, to produce new goods and services 1. Ladders, baskets, trucks: bag of apples 2. Gas station, pumps, lifts: full tank 3. Office building, computers: new software

7. Entrepreneurship The process of bringing together the three factors of production (L, L, C) A risk taker Inventor, innovator, organizer –Introduces new or improved Products, techniques, management

8. GOODS AND SERVICES BUSINESS FIRMS SELL FINISHED GOODS AND SERVICES TO HOUSEHOLDS

9. Goods – products or commodities, Physical or tangible A SCISSORS

10. Services – actions or activities INTANGIBLE GOODS Provided, Cannot be resold A HAIRCUT