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.
Natural Resources – resources that come from the Earth ◦ Water, Soil, Oil, Air, land, crops, farm animals
Labor is the workers!
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….
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!