🌎Activity #10: Factors of Production

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NOTE TO TEACHER:  You will  want to preview the video below before showing it to your class.  This video does a great job of explaining what the factors of production are.

https://youtu.be/-IvwoqPh1_I Links to an external site.

Delete everything above the line before publishing this assignment.

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I will learn what the factors of production are and understand how they contribute to the economy.

SSGeography2.png Assignment

There are four things that must come together before something can be sold as a good or service.  These things are called the "factors of production."  Watch the video below and study the chart so that you understand these concepts.  

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1.  Watch the video below to get a better understanding of what the factors of production are.

 

 

2.  After watching the video, review this chart to make sure you understanding all four factors of production.

LAND/NATURAL RESOURCES LABOR CAPITAL GOODS ENTREPRENEURSHIP

People use the term "land" to mean anything found in nature.  If you are making chairs, the natural resource might be wood.  It is from the land.  If you are making a teddy bear, you are using a natural resource because cotton grows on the land.

 

 

To provide goods and services, there must labor.  Labor means the work that people do.  Even if you bought a robot, it took labor to make it.  There is a person who built it, and the person who sold it.  Carpenters, teachers, sales people, lawyers, secretaries, actors, race car drivers, and baseball players all do labor. 

 

When you use something that is already made to make something else, you are using a capital good.  The hammer and nails a carpenter uses are capital goods.  In business, the money you need to run the business is also called "capital."

 

 

 

This means owning and running a business.  It often starts with an idea.  the person must be willing to take a risk to make the idea work.  Entrepreneurs use the land, labor and capital goods to make money.

 

 

 

 

 

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