Key Concepts Productive resources include natural resources, human resources and capital. These resources are used to produce goods and services like food, clothing and shelter. All productive resources are scarce. Therefore, producers must choose which resources will produce the highest amount of goods and services given the costs. LESSON 4 – GREAT CIVILIZATIONS DEVELOP AROUND RIVERS FOCUS MIDDLE SCHOOL WORLD HISTORY © COUNCIL FOR ECONOMIC EDUCATION, NEW YORK, NY

Three Key Productive Resources Natural Resources “Gifts of nature” used to produce goods and services; for example, fields of land, water, minerals, and forests. Human Resources The human effort available to produce goods and services. Capital Resources Goods made and used to produce other goods and services. Examples include buildings, machinery, tools, and equipment. FOCUS MIDDLE SCHOOL WORLD HISTORY © COUNCIL FOR ECONOMIC EDUCATION, NEW YORK, NY LESSON 4 – GREAT CIVILIZATIONS DEVELOP AROUND RIVERS

Key Concepts Specialization involves a situation in which people produce a narrower range of goods and services than they consume. Specialization increases productivity; it also requires trade and increases interdependence. FOCUS MIDDLE SCHOOL WORLD HISTORY © COUNCIL FOR ECONOMIC EDUCATION, NEW YORK, NY LESSON 4 – GREAT CIVILIZATIONS DEVELOP AROUND RIVERS

Key Concepts Productivity is the amount of a good or service that can be produced with a given amount of natural resources, human resources, and capital resources. It is measured by taking total output and dividing it by the number of productive units used (typically the amount of labor). FOCUS MIDDLE SCHOOL WORLD HISTORY © COUNCIL FOR ECONOMIC EDUCATION, NEW YORK, NY LESSON 4 – GREAT CIVILIZATIONS DEVELOP AROUND RIVERS

Ways to Increase Productivity In addition to specialization, productivity can be increased through: o Improved technology (new tools, irrigation) o More capital or human capital (education and skills training) o Innovation (new idea on how to reorganize the way labor is used) o Discovery of better resources (new minerals are discovered) FOCUS MIDDLE SCHOOL WORLD HISTORY © COUNCIL FOR ECONOMIC EDUCATION, NEW YORK, NY LESSON 4 – GREAT CIVILIZATIONS DEVELOP AROUND RIVERS

Capital Increases Agricultural Output Wooden Hoe Used to prepare the earth for the planting of seeds or to weed. Herding Staff Used to guide animals helping with farm work. Hunting Spear Helped in harvesting the animal used to feed individuals. FOCUS MIDDLE SCHOOL WORLD HISTORY © COUNCIL FOR ECONOMIC EDUCATION, NEW YORK, NY LESSON 4 – GREAT CIVILIZATIONS DEVELOP AROUND RIVERS