LESSON 16 THE CIRCULAR FLOWS OF ECONOLAND

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HIGH SCHOOL ECONOMICS 3RD EDITION © COUNCIL FOR ECONOMIC EDUCATION, NEW YORK, NY

Productive Resources

Human resourcesPeople: the mental and physical abilities that allow them to make contributions in the workforce.

Examples: construction workers, factory workers, teachers, doctors, truck drivers, farmers, secretaries, actors, engineers, garbage collectors, and many other occupations

LESSON 16 THE CIRCULAR FLOWS OF ECONOLAND

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HIGH SCHOOL ECONOMICS 3RD EDITION © COUNCIL FOR ECONOMIC EDUCATION, NEW YORK, NY

Productive Resources

Capital resourcesGoods that were specifically produced in order to produce other goods.

Examples: machines, equipment, tools, office and factory buildings, tractors, assembly lines, computers, grinders, trucks, and many other things that help in the production process

LESSON 16 THE CIRCULAR FLOWS OF ECONOLAND

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HIGH SCHOOL ECONOMICS 3RD EDITION © COUNCIL FOR ECONOMIC EDUCATION, NEW YORK, NY

Productive Resources

Natural resourcesAn actual or potential form of wealth extracted or harvested from the natural environment.

Examples: trees, fish, soil, minerals (such as copper, aluminum, iron ore, gold, and zinc), air, water, fossil fuels (such as coal, oil, and natural gas), as well as the space provided by a plot of land

LESSON 16 THE CIRCULAR FLOWS OF ECONOLAND

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HIGH SCHOOL ECONOMICS 3RD EDITION © COUNCIL FOR ECONOMIC EDUCATION, NEW YORK, NY

A Description of Production

Natural resources are transformed by human and capital resources into goods and services. Thus, human and capital resources do the work of production, while natural resources provide the material that they transform. Because human and capital resources require energy to work, natural resources also provide the energy required for these resources (i.e., food for workers and fuel for machines).

LESSON 16 THE CIRCULAR FLOWS OF ECONOLAND

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HIGH SCHOOL ECONOMICS 3RD EDITION © COUNCIL FOR ECONOMIC EDUCATION, NEW YORK, NY

The Circular Flows in a Market Economy

LESSON 16 THE CIRCULAR FLOWS OF ECONOLAND

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HIGH SCHOOL ECONOMICS 3RD EDITION © COUNCIL FOR ECONOMIC EDUCATION, NEW YORK, NY

The Circular Flows in a Market Economy with Government