2. Factors of Production are…
The resources used to make goods and
services
Separated into three categories
Land
Labor
Capital
3. Land
For Economic purposes, Land refers to all
Natural Resources
Examples:
Minerals
Timber
Real Estate
4. Labor
For Economic purposes, refers to the actual
work an individual or individuals does
Examples:
Un-Skilled Labor
Semi-Skilled labor
Skilled Labor
Professional Labor
(All 4 Categories show “work” being done)
5. Capital
For Economic purposes, Capital refers to
man-made or possessed resources used to
produce something else and falls into two
categories
Physical Capital
The tools or equipment used in production
Human Capital
The skills or training of the workers
Don’t confuse this with Labor (The actual
performance of work using your human capital)