Presentation on theme: "LESSON THREE ~ THE FACTORS OF PRODUCTION ~"— Presentation transcript:
1LESSON THREE ~ THE FACTORS OF PRODUCTION ~ UNIT ONE ~ CHAPTER ONELESSON THREE~ THE FACTORS OF PRODUCTION ~
2LESSON THREE ~ THE FACTORS OF PRODUCTION ~ Four factors of production must be present to produce goods and services
3INTRODUCTION TO ECONOMICS ~THE FACTORS OF PRODUCTION~Four factors of production must be present to produce goods and services:LANDLABORCAPITALENTREPRENEURS
4INTRODUCTION TO ECONOMICS ~THE FACTORS OF PRODUCTION~FACTORS OF PRODUCTION: resources required to produce the things we would like to have (land, labor, capital, and entrepreneurs)All four factors are required to produce resourcesAre you capable of identifying all factors?
5INTRODUCTION TO ECONOMICS ~THE FACTORS OF PRODUCTION~LANDIn economics, land refers to “gifts of nature”Examples: desert, fields, forests, mineral deposits, livestock, sunshine, feet, and climateThere is a finite amount of land available; thus, economists tend to think of it as being fixed, or in limited supply
6INTRODUCTION TO ECONOMICS ~THE FOUR FACTORS OF PRODUCTION~LABORLabor refers to people with all their efforts, abilities, and skillsThis category includes all people except “entrepreneurs”Factors such as birthrates, immigration, famine, war, and disease have had dramatic impacts on the quantity and quality of labor
7INTRODUCTION TO ECONOMICS ~THE FOUR FACTORS OF PRODUCTION~CAPITALAKA “CAPITAL GOODS” – the tools, equipment, machinery, and factories used in the production of goods and servicesCapital Goods are unique because they result from productionExamples include: computers, bulldozers, trucks, machinery, and printers
8INTRODUCTION TO ECONOMICS ~THE FOUR FACTORS OF PRODUCTION~ENTREPRENEURSEntrepreneurs are singled out because they are the innovators responsible for much of the change in the economyENTREPRENEUR: a risk taker in search of profits who does something new with existing resourcesENTS are considered ‘drivers of the economy’ because they are the people who start new businesses or bring new products to market
9INTRODUCTION TO ECONOMICS ~THE FOUR FACTORS OF PRODUCTION~Everything we make requires the FOUR FACTORS OF PRODUCTIONEverything can be categorized into the FOUR FACTORS OF PRODUCTIONWhen one factor of production is altered or affected, the other three also affected
10INTRODUCTION TO ECONOMICS ~THE FOUR FACTORS OF PRODUCTION~HOW WELL DO YOU KNOW THE FOUR FACTORS OF PRODUCTION?IN GROUPS OF TWO, FIND TWO EXAMPLES OF EACH OF THE FOUR FACTORS OF PRODUCTION. LABEL THEM AND PRINT THEM OUT.BE PREPARED TO SHARE WITH THE CLASS!