LESSON 16 THE CIRCULAR FLOWS OF ECONOLAND
Productive Resources
Human resources
People: the mental and physical abilities that
allow them to make contributions in the
workforce.
Examples: construction workers, factory workers,
teachers, doctors, truck drivers, farmers, secretaries,
actors, engineers, garbage collectors, and many other
occupations
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HIGH SCHOOL ECONOMICS 3RD EDITION © COUNCIL FOR ECONOMIC EDUCATION, NEW YORK, NY
LESSON 16 THE CIRCULAR FLOWS OF ECONOLAND
Productive Resources
Capital resources
Goods that were specifically produced in order
to produce other goods.
Examples: machines, equipment, tools, office and
factory buildings, tractors, assembly lines, computers,
grinders, trucks, and many other things that help in the
production process
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HIGH SCHOOL ECONOMICS 3RD EDITION © COUNCIL FOR ECONOMIC EDUCATION, NEW YORK, NY
LESSON 16 THE CIRCULAR FLOWS OF ECONOLAND
Productive Resources
Natural resources
An actual or potential form of wealth extracted
or harvested from the natural environment.
Examples: trees, fish, soil, minerals (such as copper,
aluminum, iron ore, gold, and zinc), air, water, fossil
fuels (such as coal, oil, and natural gas), as well as the
space provided by a plot of land
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HIGH SCHOOL ECONOMICS 3RD EDITION © COUNCIL FOR ECONOMIC EDUCATION, NEW YORK, NY
LESSON 16 THE CIRCULAR FLOWS OF ECONOLAND
A Description of Production
Natural resources are transformed by human
and capital resources into goods and services.
Thus, human and capital resources do the
work of production, while natural resources
provide the material that they transform.
Because human and capital resources require
energy to work, natural resources also provide
the energy required for these resources (i.e.,
food for workers and fuel for machines).
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HIGH SCHOOL ECONOMICS 3RD EDITION © COUNCIL FOR ECONOMIC EDUCATION, NEW YORK, NY
LESSON 16 THE CIRCULAR FLOWS OF ECONOLAND
The Circular Flows in a Market Economy
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HIGH SCHOOL ECONOMICS 3RD EDITION © COUNCIL FOR ECONOMIC EDUCATION, NEW YORK, NY
LESSON 16 THE CIRCULAR FLOWS OF ECONOLAND
The Circular Flows in a Market Economy
with Government
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HIGH SCHOOL ECONOMICS 3RD EDITION © COUNCIL FOR ECONOMIC EDUCATION, NEW YORK, NY