2.  All resources can be classified as:  Land  Labor  Capital  Entrepreneurial Ability  Called the 4 Factors of Production  They are the resources used to make products.

3.  Natural Resources – resources that come from the Earth ◦ Water, Soil, Oil, Air, land, crops, farm animals

4.  Labor is the workers!

5.  Two types of capital  1. Human Capital ◦ The skills, knowledge, recipes necessary to produce goods/services  2. Physical Capital ◦ The tools and equipment necessary to produce goods/services ◦ Primary Focus is Physical Capital….

6.  This is the ability for a person or group of people to take the risk of combining the other F.O.P. and creating a good/service  In other words, it’s the idea or the name brand!