EPF1D. FACTORS OF PRODUCTION

Basic Economic Structures

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What are the factors of production?

Essential question:

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There are 4 Factors of Production

Natural resources Human resources Capital resources Entrepreneurs

ResourcesAll the things used in producing goods, services, buildings, ideas

Good

ResourceResource

Resource

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Natural Resources

Are “gifts of nature” and exist without human intervention

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Human resources

Refer to the effort of people which is applied to the production of goods and services

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Capital resources

Physical capital – refers to manmade goods, such as tools, which are used to produce other goods.

Human capital – refers to the skills and knowledge a person has acquired through experience and/or education

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Entrepreneurs Individuals who are willing to

take risks, to bring the resources together and develop new products, and start new businesses.

They recognize opportunities, like working for themselves, and accept challenges.

Entrepreneurs accept the risks in organizing resources to produce goods and services because they expect to earn a profit.

What do you think: Natural, Human or Capital Resource?

What do you think: Natural, Human or Capital Resource?

What do you think: Natural, Human or Captial Resource?