1.1.3 Economic resources

Factors of Production

The resources used by firms to produce goods and services, including land, labor, capital, and enterprise.

Economic Resources

Resources classified by economists into land, labor, capital, and enterprise, which are used for production.

Land

Natural resources derived from the Earth, including oil, crops, air, and fish.

Labor

The workforce within an economy, representing all human effort utilized in the production of goods and services.

Human Capital

The value of a worker, assessed by skills, qualifications, and income earned.

Capital

Refers to man-made resources, such as machinery and tools, used in the production process.

Enterprise

The entrepreneur’s ability to organize land, labor, and capital to produce profitable products.

Scarce Resource

A resource that is in limited supply, like many natural resources that are non-renewable.

Market Mechanism

The process by which resources are allocated and priced in the economy.

Profit

The financial gain obtained by an entrepreneur after costs are subtracted from revenue.

Economic Methodology

The framework and approaches used by economists to study and analyze economic problems.

Production Inputs

Resources that firms utilize in the production of goods and services.

Gross Weekly Pay

The total amount earned before any deductions by full-time employees.

Sustainable Use

The practice of using resources in a way that meets current needs while preserving them for future generations.

Top Paid Jobs

Occupations that generate the highest incomes, often influenced by skills, demand, and market value.

Capital Goods

Man-made assets used in the production of goods and services that generate future income.

Consumption Goods

Items purchased for immediate consumption or use, rather than for generating income.

Investments

The allocation of resources towards projects or assets with the expectation of future benefits.

Natural Resource Economics

The field of economics that studies the allocation and use of natural resources.

Skills of the Entrepreneur

The unique abilities and traits that enable an entrepreneur to successfully manage and grow a business.