4 Types of Resources

Reference Chapter 1.4

in your text for additional information

Resources = what is needed to produce goods and services

Resources = Factors of Production

Economists classify RESOURCES or factors of production in 4

categories1. Land

2. Labor

3. Capital

4. Entrepreneurship

Landincludes all natural resources

LABOR

Capital= produced goods that can be used for further

production• Farm machinery, industrial tools, factories

• Also, commonly, investment money

Entrepreneurship

• The special talent some people have for searching out and developing new ideas

• The special talent for developing new products and new ways of doing things.

But how is an entrepreneur different from an inventor?

Which category of resources identifies these?

• Frida’s work as a secretary• Iron ore• Crop-duster airplane• Computer used to write a book• Comedian telling jokes on tv• Singer in an out-door concert• Teacher• Someone inventing and marketing a new good• Crude Oil• Deep sea oil platform

People need resources so they pay for them.

We can describe that payment by using money.

Monetary payments to Resources:

Monetary payments to Resources:

1. Land Rent

2. Labor Wages

3. Capital Interest

4. Entrepreneurship Profit

Price = the sum of the monetary payments to resources

Let’s Play a Game !!!

• Get side-by-side with your partner so you can see the screen.

• Write both your names on the top of a piece of paper. Include the period.

• Title your paper:Economics is Everywhere