1. Also called: Factors of Production and Economic Inputs
ECONOMIC RESOURCES
Also called:
Factors of Production and
Economic Inputs

2. Economic Resources
Include everything that can be used to make products
All the ingredients used to make all the goods, services, and ideas produced in an economy
Think of a product you’re wearing now;
What economic resources were used to produce that good?

3. Goods, Services and Ideas
Good – a physical item, something you can touch
Examples…
Services – actions that are done for you
Ideas – a concept, cause, issue, image, or philosophy that can be marketed
Examples……

4. Categories of Economic Resources or Factors of Production
Natural Resources
Human Resources or Labor
Capital Resources
Entrepreneurial Resources

5. Natural Resources
(Land) – anything provided by nature that affects the productive ability of a country
Raw materials
Soil, water, minerals, plants, animals, climate
Scarce
Every good that you have was made from one or more natural resources.
Every service that you use involved the use of natural resources
Not equally distributed among nations
Our productive ability depends on our fertile soil, minerals, water, and timber resources and mild climate

6. Human Resources or Labor
Human effort, either physical or mental, that goes into the production of goods and services
Workers -the people who turn resources into products
Human capital – the accumulated knowledge and skills of people; total value of each person’s education and skills – technological skills very valuable in today’s world
Includes all the people in a country who are available to work
Includes the workers’ levels of education, skills, and productivity (the amount of work a person can do in a specific amount of time)
Countries can be economically successful with few natural resources if their workers are highly educated, highly skilled, and very productive.

7. Capital Resources/Goods
Buildings, tools, machines, and other equipment that are used to produce other goods but do not directly satisfy human wants
Examples?????
Because capital consists of manufactured products, it is also called capital goods.
Money
Technology – the use of tools to improve human life
Tools – any objects that can be used to change the natural environment for to extend human capabilities
Ex.-pencils, computers, bulldozers, assembly lines, internet…….
The level of technology available in a country has a major impact on its economy.
Benefits of advanced technology – better food, housing, health care, and more consumer goods (stuff)

8. Entrepreneurial Resources
The willingness and ability to start a new business
New ideas for new products, services, businesses
Who are/were these people:
Dave Thomas; Mark Zuckerberg; Steve Jobs
Ability to organize economic inputs into a successful business
Ability to take risks, financial and personal, to start a business.
The number and quality of entrepreneurs in a country have a major impact on the success of the economy.

9. Additional Important Info
Government provides many services that are essential to the operation of a business – often called the 5th factor of production
Infrastructure – the transportation systems and utilities necessary for a modern economy
usually large and cannot be moved form place to place
Includes: highways, bridges, railroads, public transportation, seaports, airports, and postal service
Utility infrastructure includes sanitation systems, electric power plants, water systems, and telephone service
Infrastructure provides the foundation on which industry and business are built
Most infrastructure has been built by governments but private companies have built railroads and oil pipelines