4 Types of Resources
Reference Chapter 1.4
in your text for additional information
Resources = what is needed to
produce goods and services
Resources = Factors of Production
Economists classify RESOURCES
or factors of production in 4
categories
1. Land
2. Labor
3. Capital
4. Entrepreneurship
Land
includes all natural resources
LABOR
Capital= produced goods that can be
used for further production
• Farm machinery, industrial tools, factories
• Also, commonly, investment money
Entrepreneurship
• The special talent some people have for
searching out and developing new ideas
• The special talent for developing new
products and new ways of doing things.
But how is an entrepreneur different from an inventor?
Which category of resources
identifies these?
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•
•
•
•
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•
•
•
Frida’s work as a secretary
Iron ore
Crop-duster airplane
Computer used to write a book
Comedian telling jokes on tv
Singer in an out-door concert
Teacher
Someone inventing and marketing a new good
Crude Oil
Deep sea oil platform
People need resources so they pay
for them.
We can describe that
payment by using money.
Monetary payments to
Resources:
Monetary payments
to Resources:
1. Land
Rent
2. Labor
Wages
3. Capital
Interest
4. Entrepreneurship
Profit
Price = the sum of the monetary
payments to resources
Let’s Play a Game !!!
• Get side-by-side with your partner so you
can see the screen.
• Write both your names on the top of a
piece of paper. Include the period.
• Title your paper:
Economics is Everywhere