Factors of Production

Land, Labor, Capital, and Entrepreneurs are known as the factors of production.

Land All natural resources used to produce goods and services.  Farmland – to produce products such as corn, cotton, wheat, etc.  Natural Resources – Oil, coal, wood, water, marble, diamonds, etc.

Labor The effort that a person devotes to a task for which that person is paid.  Teacher > teaches, grades, etc. = $$$  Custodian > cleans, maintenance, etc. = $$$  Asst. Principal > discipline, safety, etc. = $$$

Capital Human-made resource that is used to produce other goods and services.  Physical Capital Building, tools, vehicles, machinery, etc.  Human Capital Investment in Education and Experience Military, Sports, Doctors, Nurses, Teachers, etc.

Entrepreneur Ambitious individuals who decide how to combine land, labor, and capital resources to create new goods and services.  Develop original ideas  start businesses  create new industries  fuel economic growth

Who are they?

What does it take to make a Beef Hamburger patty Land  Cow  Water  Feed Labor  Ranchers  Slaughterhouse workers  FDA inspectors  Meat packaging plant workers  Butcher Capital  Cattle Ranch  Slaughterhouse  Meat processing plant  Knives  Ground Beef Entrepreneur  Grocery Store (Food 4 Less, North Gate, etc.)  McDonalds  Burger King  Carl’s Jr.  In N Out