This document discusses the factors of production: natural resources, labor, capital, entrepreneurs, and management and marketing. Natural resources include land and gifts of nature that some nations have in abundance while others lack. Labor is divided into unskilled, skilled, and is usually the most costly factor. Capital goods are tools, machinery, and vehicles that are used to make other goods and can also be consumer goods themselves. Entrepreneurs take risks by starting new businesses and ideas or investing in them, and management sets goals and oversees efficiency while marketing informs and attracts consumers.

1. Supplying Goods and ServicesSupplying Goods and Services

2. FactorsFactors of production
 Natural resources [“Land,”
“Gifts of Nature”]
 List some examples…
 Some nations have these in
abundance; others…
 Labor
 Unskilled – no formal training
 Skilled – trained in specialized
task
 [usually the most costly.
Why?]

3.  Capital
 Capital goods – “the stuff that
makes stuff”
 Tools, machinery, vehicles,
etc.
 Also a result of production
themselves
 Think of some examples…
 Can a consumer good be a
capital good? Examples?
 Finance capital - money/funds
 Start-up money to get a
business going
 Other funds [such as stock
sales] that allow a company to

4.  Entrepreneurs: the risk takers
 Start new businesses/ideas
 Invest in new businesses or
products
 Risk of losing
 A real engine of our economy
 Management:
 Sets goals
 Oversees for efficiency
 Marketing:
 Informing and attracting consumers
 presentation