Human resources refer to people's labor and skills, while labor productivity depends on worker skill, technology level, and machinery quality. Natural resources come from land, sea, and air and include resources like soil, fish, and water, with some areas being poor due to a lack of natural resources. Capital resources are machines, tools, and buildings used for production, and they depreciate over time as their value decreases.

1. Factors of Production Human Resources- The people whose efforts and skills go into the production of goods and services. Labor productivity- The amount each worker produces in a specified amount of time. Productivity is affected by: 1) the skill of the labor force, 2) level of technology, 3) Quality of machinery and tools

2. Factors of Production Natural Resources- Are material obtained from land, sea, and air. They include soil, minerals, fish, wildlife, water, and timber. Some areas of the world are poor or have a low standard of living, because they lack natural resources. Other countries, like Japan or Denmark are rich and have a high standard of living even thou they lack natural resources

3. Factors of Production Some natural resources are renewable like forests, but others like oil are non-renewable. Capital Resources- Examples include machines, tools, buildings, that we use to produce goods and services. Capital Resources wear out and have to be replaced we call this Depreciation. The value decreases over time.