1. Look at the truck.
On a piece of paper, write down all the things that went into the production of this truck.

2. Four Factors of Production
These are the things (“factors”) that go into the making (“production”) of things (“things”)
There are four of them:
Land
Labor
Capital
Entrepreneur

3. Vocabulary natural resources not created by humans
Land
Labor
natural resources not created by humans
people with all their efforts, abilities, and skills

4. Vocabulary (2)
Capital
Entrepreneur
tools, equipment, machinery, and factories used in the production of goods and services
a risk-taker in search of profits who does something new with existing resources

5. A Visual Representation

6. So… Based on these four factors of production:
Are we missing anything that went into the production of that Ford truck from the first slide?
Where do the factors get grouped?

7. Land
Labor
Capital
Entrepreneur

8. Human Capital NOT one of the factors of production
However, still important
Defined as “sum of peoples’ skills, abilities, health, and motivation”
So, knowing this, what are some steps you could take to IMPROVE human capital?

9. Journal Question
Which of the four factors of production is the most important factor? Why?