1. FACTORS OF PRODUCTION What is it made of??

2. LEARNING TARGET I can explain the factors of production I can describe the production process I can identify the 3 factors of production in the production equation I can explain the characteristics of natural resources using examples.

3. FACTORS OF PRODUCTION THE PRODUCTION EQUATION Natural Resources (LAND) Human Resources (LABOR) Capital (machines/tools/technology) _____________________________________ Product!

4. FACTORS OF PRODUCTION #1: NATURAL RESOURCES  Anything that is used to make a product that came from nature.  Examples: Land, Timber, Farms, Fisheries, Precious Metals, etc.  List as many examples of natural resources you can think of that are used in making a cake.

5. CAKE RECIPE Preheat oven to 350 degrees. Grease and flour a 9x9 cake pan. In a bowl, cream together the sugar and butter. Beat in the eggs, one at a time, then stir in the vanilla. Combine flour and baking powder, add to the creamed mixture and mix well. Finally stir in the milk until batter is smooth. Pour or spoon batter into the prepared pan. Bake for 30-40 minutes. 1 cup white sugar ½ cup butter 2 eggs 2 teaspoons vanilla extract 1 ½ cups all-purpose flour 1 ¾ teaspoons baking powder ½ cup milk

6. FACTORS OF PRODUCTION #2: HUMAN RESOURCES (HUMAN)  Labor represents the human effort needed to transform human resources into consumer products.  What human resources are used in making that cake?

7. CAKE RECIPE Preheat oven to 350 degrees. Grease and flour a 9x9 cake pan. In a bowl, cream together the sugar and butter. Beat in the eggs, one at a time, then stir in the vanilla. Combine flour and baking powder, add to the creamed mixture and mix well. Finally stir in the milk until batter is smooth. Pour or spoon batter into the prepared pan. Bake for 30-40 minutes. 1 cup white sugar ½ cup butter 2 eggs 2 teaspoons vanilla extract 1 ½ cups all-purpose flour 1 ¾ teaspoons baking powder ½ cup milk

8. FACTORS OF PRODUCTION #3: CAPITAL- MACHINES  The monetary or physical items used to produce goods and services.  Examples: Buildings, Factories, Equipment, Technology, or any man made items used to make a product. Can be simple (hammer) or complex (robot).  What capital is used to make that cake?

9. CAKE RECIPE Preheat oven to 350 degrees. Grease and flour a 9x9 cake pan. In a bowl, cream together the sugar and butter. Beat in the eggs, one at a time, then stir in the vanilla. Combine flour and baking powder, add to the creamed mixture and mix well. Finally stir in the milk until batter is smooth. Pour or spoon batter into the prepared pan. Bake for 30-40 minutes. 1 cup white sugar ½ cup butter 2 eggs 2 teaspoons vanilla extract 1 ½ cups all-purpose flour 1 ¾ teaspoons baking powder ½ cup milk

10. WATCH! Make a 3 column chart that looks like this: NaturalHumanCapital

11. AS YOU WATCH, CLASSIFY AS MANY AS YOU SEE INTO THE COLUMN OF THE CHART THEY BELONG IN.

12. WHAT CATEGORY DOES THIS GO INTO? Capital!

13. Natural Resource!

14. Human

15. Natural and Human

16. FACTORY TOUR  Have you ever toured a factory?  What did you see? What do you think you would see?

17. HOW IT’S MADE!

18. ON YOUR PAPER…  Create a timeline of how these apple pies are made in the factory.  Use three different colors. Each color should represent a different factor of production.  (HINT) If there are steps that aren’t shown in the video, you may include them also!