1. Goods and Services Goods = physical objects
Services = actions or activities that one person performs for another

2. List all the Goods and Services you can think of in our economy

3. Factors of Production
The resources that are used to make all goods and services
Economists identify Four Factors of Production: Land, Labor and Capital (Physical and Human)

4. Land
All natural resources (materials found in nature) used to produce goods and services.

5. Labor
The effort a person devotes to a task for which the person is paid.

6. Capital
Any human-made resource used to produce other goods and services
There are two types: physical and human

7. Physical Capital
Human-made objects used to create other goods and services

8. Human Capital
Knowledge and skills a worker gains through education and experience

9. Chocolate Chip Cookies Partner Activity
Imagine an alien from Mars just arrives on earth and has developed a taste for Chocolate Chip Cookies
Make an extensive list of EVERYTHING needed to produce chocolate chip cookies.
Label each thing you listed as one of the four factors of production.

10. Chocolate Chip Cookies Partner Activity

11. McDonald’s French Fries Partner Activity
Make an extensive list of EVERYTHING needed to produce McDonald’s French Fries
Label each thing you listed as one of the four factors of production.

12. Choose a product that you use frequently
Choose a product that you use frequently. Write a paragraph in which you explain the production of this product. Specifically identify each of the four factors of production