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Think About It: Imagine you have a chocolate chip cookie Consider all the different things needed to make this cookie from start to finish- from when things are grown until the package is in your pantry. Make a list and see how many you can think of in my set time limit.
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ELABORATE: The Four Factors of
Production
1
Think About It:
1. Imagine you have a chocolate chip cookie 2. Consider all the different things needed to make
this cookie from start to finish- from when things are grown until the package is in your pantry.
3. Make a list and see how many you can think of in my set time limit.
Did you consider...?
Tractors, farmers, chickens, eggs, delivery trucks, printers, cocoa beans, trucks, ovens,
conveyer belt, factory workers, store, cashier, gas station, paper, oil, sugarcane, cows, etc.You get the point… Lots of different parts
come together to produce any product
The Four Factors of Productio
n
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EntrepreneurshipCapital
Labor
Land
Producing goods and services requires the use of resources.
ALL resources can be classified in to one of the Factors of
Production:
The Four Factors of Production
1.Land- All natural resources that are used to produce goods and services. Anything that
comes from “mother nature.”
(Water, Sun, Plants, Oil, Trees, Stone, Animals, etc.)
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The Four Factors of Production
2. Labor- Any effort a person devotes to a task for which that person is paid.
(manual laborers, lawyers, doctors, teachers, waiters, etc.)
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The Four Factors of Production
3. Capital- Any human-made resource that is used to create other goods and
services
(tools, tractors, machinery, buildings, factories, etc.)
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The Four Factors of Production
4. Entrepreneurship- ambitious leaders that
combine the other factors of production to create goods
and services.
EX: Henry Ford, Bill Gates, Inventors, Store and
Business Owners, etc.
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Entrepreneurs:1. Take the Initiative2. Innovate3. Assume the risk
So they can get PROFITS.
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The Four Factors of Production
1. Natural Resources- Materials from the earth or nature
2. Labor- people doing jobs3. Capital-
objects and goods needed to do a job4. Entrepreneur-
the owner who takes the risks and makes the profits
The Four Factors of Production
Think About It:
1. Where have you heard or seen this word before?
2. What do you think it might mean?
An industry is all business activity related to the same
type of good or service.EX: Auto industry
(all businesses related to a car)
Can you name other examples of industries?
There are different levels of jobs within an industry.
Auto Industry
Read through the cards.
Try to figure out where they belong on the chart. Each row
reads left to right and describes the same
idea.14
Task:
Where did you place the cards?
Which did you group together?
Why?15
Think About It:
16
Primary
1st
Takes natural
resources from the earth- like mining,
fishing, and agriculture
Fishing
Secondary
2nd
Makes products using the natural
resources- like construction, factories, and
processing plants
Canning plant processes the
fish
Tertiary
3rd
Provides a service-
like restaurants, supermarkets,
hospitals, schools, and emergency
services
Supermarkets
sell the fish
Quaternary
4th
Gathers and
provides information- like
research and tracking
Barcodes tell
the store when to reorder fish
17
Primary
1st
Takes natural
resources from the earth- like mining,
fishing, and agriculture
Fishing
Secondary
2nd
Makes products using the natural
resources- like construction, factories, and
processing plants
Canning plant processes the
fish
Tertiary
3rd
Provides a service-
like restaurants, supermarkets,
hospitals, schools, and emergency
services
Supermarkets
sell the fish
Quaternary
4th
Gathers and
provides information- like
research and tracking
Barcodes tell
the store when to reorder fish
18
Primary
1st
Takes natural
resources from the earth- like mining,
fishing, and agriculture
Fishing
Secondary
2nd
Makes products using the natural
resources- like construction, factories, and
processing plants
Canning plant processes the
fish
Tertiary
3rd
Provides a service-
like restaurants, supermarkets,
hospitals, schools, and emergency
services
Supermarkets
sell the fish
Quaternary
4th
Gathers and
provides information- like
research and tracking
Barcodes tell
the store when to reorder fish
19
Primary
1st
Takes natural
resources from the earth- like mining,
fishing, and agriculture
Fishing
Secondary
2nd
Makes products using the natural
resources- like construction, factories, and
processing plants
Canning plant processes the
fish
Tertiary
3rd
Provides a service-
like restaurants, supermarkets,
hospitals, schools, and emergency
services
Supermarkets
sell the fish
Quaternary
4th
Gathers and
provides information- like
research and tracking
Barcodes tell
the store when to reorder fish
Types of Industries a) Primary Industry- Businesses that gather the natural
resources needed to make the good b) Secondary Industry- Factories where the good is produced c) Tertiary Industry- Stores and businesses that sell the good or serviced) Quaternary Industry- Jobs that study and conduct research
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Think About It:
Choose one of the following industries and
think of examples of each type for that field.
1. Music Industry2. Cattle Industry
3. Oil and Gas Industry4. Space Industry