By the end of this unit you will be able to

• Define human, capital and natural resources

• Define and identify examples of renewable and non-renewable resources

• Describe ways in which cultural considerations impact on resource use choices

• Explain the significance of sustainable resource use

• Explain consequences of resource use choices on producers and society

*Resources

*Producers and Resources *Producers use resources to create the goods and services

that are sold to households.

*Resources are sometimes called factors of production.

*The Factors of Production include

*Natural

*Human

*Capital

*Human * Human resources are the people who contribute to the

production process.

*They can be grouped into

Labour

*the people who offer their services to businesses in exchange for wages. E.g. hairdressers, builders, teachers

Entrepreneurship

*Entrepreneurs = the person who has started the business, has taken a risk and put their own funds into the business venture. They also co-ordinate other resources in the business. If the business fails the entrepreneur may lose his/her funds. If the business is successful, they will receive the profit.

*Capital Resources *Capital Resources = human made goods that are used in the

production of other goods and services.

*E.g. Machinery, computers, stationary.

*Semi-finished goods are also capital because they are used in the production of other goods and services.

*E.g. Zip used on a pencil case.

*Investment

*Investment = a firm is increasing its stock of capital goods (purchases of capital stock)

*Natural Resources *Natural Resources include any thing which occurs naturally in

the

*Sea

*Land

*Air

*Natural resources can be referred to as land however they include water, trees, pounamu, sunlight, minerals, fish, birds and sheep.

*Natural resources can be classified as being renewable or non renewable

*Renewable Resources *Renewable resources = those that regenerate of their own

accord within a reasonable time frame.

*E.g. Pine Tree, Wool, Water, Wind, Sun.

*A reasonable timeframe means that the resource will naturally regenerate faster than it is used or well before it runs out.

*E.g Rimu or Kauri trees may take hundreds of years to regenerate so would not be considered renewable.

*Non- Renewable Resources *Non- renewable resources will not regenerate or replenish

naturally within a reasonable timeframe.

*E.g. Coal, Oil, Gold, Natural Gas, and fossil fuels.

*These resources are limited in supply and will disappear forever when all of it is used.

*While these resources do not regenerate within a reasonable timeframe there are choices that producers and consumers can make to preserve them e.g Recycling and Reusing.

*Cultural Aspects *Indigenous people around the world traditionally have a

strong link to the land and the resources that it provides.

*Many of New Zealand’s Natural resources have a cultural and spiritual significance to the tangata whenua (people of the land)

*The Resource Management Act in NZ has special obligations in relation to the Treaty of Waitangi ad the principals of the Treaty must be considered when making decisions about managing the use, protection and development of natural and physical resources.

*Maori and Resources *Resources of particular significance to Maori include

*Urupa (Burial sites)

*Wahi tapu ( scared sites)

*Archaeological sites

*Flora and Forna e.g. mahinga kai ( food resources) or those used in raranga ( weaving) or rongoa ( tradtional medicine)

*Areas of significance along the coast e.g. tauranga waka ( canoe landing sites) and mahinga kai (food resources and gathering) areas

*Resource Combinations

Inputs (human, capital or natural

resources)

Process (the

resources are combined and

processed)

Output (the finished

good or service)

*Resource Combinations

Inputs (human, capital or natural

resources)

Process (the

resources are combined and

processed)

Output (the finished

good or service)