FACTORS OF PRODUCTION OBJECTIVES Define the factors of
FACTORS OF PRODUCTION
OBJECTIVES � Define the factors of production and describe how they interrelate � Explain what happens when the factors of production interact with entrepreneurism � Explain how the factors of production go into making a selected product
THE FACTORS OF PRODUCTION � What materials were used? � Where might this have come from? � Were people or machines or both involved in constructing it? � Was everything produced in one place? � How might it have gotten from the factory that produced it to the store?
GROUPING
FACTORS � Labor � Workers make the products � Land �A place used to make products and house offices � Capital � Needed � What to pay for everything about Entrepreneurship?
THE FACTORS OF PRODUCTION AND ENTREPRENEURSHIP � Presentation
WHO PRODUCES WHAT AND WHY � If the different factors of production are scarce resources, how might the distribution of these resources across the globe impact what things a country produces? � Globe
WHO PRODUCES WHAT AND WHY � Factors of production don’t just explain how something is made, but why it is made in one particular area or country and not another � The abundance of any combination of factors of production will often push countries to produce particular products
WHO PRODUCES WHAT AND WHY �A mountainous country located in the tropics such as Colombia or Vietnam produces a great deal of coffee because the key factors of production for this economic activity—long growing seasons, rich soil, and abundant, low-skilled labor—are available
WHO PRODUCES WHAT AND WHY � The same could be said for IKEA, a company that sells inexpensive, self-assembly wood furniture sold in over 37 countries. The company started in Sweden, a country with vast forests (land), a developed manufacturing capability (capital), and a skilled workforce (labor).
WHO PRODUCES WHAT AND WHY � What are possible products that a particular region or country might be better able to produce because of its resident factors of production? � Factors of production are mobile and can change over time, they still exert great influence over what economic activities take place where
WHO PRODUCES WHAT AND WHY � Download: Worksheet- Factors of Production � Fill in the second box, and guess what country is bring described � Download: Reading- Country Factors of Production Summaries � Fill in the rest of the boxes after you finish reading � Drop it in the dropbox when complete
FINDING FACTORS OF PRODUCTION � Define and categorize the real factors of production � Who eats food from the tropics? � List examples � What are some factors of production?
FINDING FACTORS OF PRODUCTION � For those not tropical, who would like to make a small wager? � Wager= � Who 1 candy bar likes chocolate and eats it regularly? � What is the key ingredient in chocolate and where does it come from? � What is a cacao tree? � Where is this tree located?
FINDING FACTORS OF PRODUCTION � Download: Finish Reading- Chocolate from Start to � Focus on bolded vocabulary and it meaning in factors of production � When finished reading download: Worksheet - Chocolate from Start to Finish � Groups of three � Assign each member the task of finding one factor of production � Turn into classpress dropbox
FACTORS OF PRODUCTION � Land � Labor � Capital � Entrepreneurship � Define each � Which is most important?
FACTORS OF PRODUCTION � Should entrepreneurship be included? � Divide yourselves in half and defend one side of the argument
PROJECT � The goal of this project is to identify specific factors of production and how they interact to create products you use everyday � You will make an “ingredient” list, a map connecting the factors, reasons why certain locations were chosen, and a presentation describing the process
PROJECT � You are to work in pairs (one group of 3) � At the end you will create a slide presentation describing the product and its factors of production � Identify the commodities used in the product � Identify the labor and capital requirements at each stage of production � Describe the reasons why each place was chosen to produce the product
PROJECT � Be able to trace on a map where the inputs come from, where do they go, where/how are they changed, and the end product � Basically trace the product from the ground to your possession identifying the factors of production along the way.
ENRICHMENT � Ask students to guess where their clothes come from. Next, have class members look at the labels on their clothing to see where it was made. Create a chart listing the clothing product and country of origin. Once the data are tallied, think about why certain products come from certain countries. Focus your attention on influences that most people would not describe as factors of production (for example, proximity to major markets).
ENRICHMENT � Think about how learning another language could be seen as an investment in human capital. Choose three languages other than English you could learn that you believe would be a worthwhile investment of their time and effort. Write a brief analysis of how and why each language would serve you in the future.
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