Factors of Production Factors of Production l Land

Factors of Production

Factors of Production l Land, Labor, Capital, and Entrepreneurs are known as the factors of production.

Land l All natural resources used to produce goods and services. ¡ Farmland – to produce products such as corn, cotton, wheat, etc. ¡ Natural Resources – Oil, coal, wood, water, marble, diamonds, etc.

Labor l The effort that a person devotes to a task for which that person is paid. ¡ ¡ ¡ Teacher > teaches, grades, etc. = $$$ Custodian > cleans, maintenance, etc. = $$$ Asst. Principal > discipline, safety, etc. = $$$

Capital l Human-made resource that is used to produce other goods and services. ¡ Physical Capital l ¡ Building, tools, vehicles, machinery, etc. Human Capital l Investment in Education and Experience • Military, Sports, Doctors, Nurses, Teachers, etc.

Entrepreneur l Ambitious individuals who decide how to combine land, labor, and capital resources to create new goods and services. ¡ Develop original ideas ¡ start businesses ¡ create new industries ¡ fuel economic growth

Who are they?

What does it take to make a Beef Hamburger patty l Land ¡ ¡ ¡ l l Cow Water Feed ¡ ¡ ¡ Labor ¡ ¡ ¡ Ranchers Slaughterhouse workers FDA inspectors Meat packaging plant workers Butcher Capital ¡ ¡ l Cattle Ranch Slaughterhouse Meat processing plant Knives Ground Beef Entrepreneur ¡ ¡ ¡ Grocery Store (Food 4 Less, North Gate, etc. ) Mc. Donalds Burger King Carl’s Jr. In N Out