Resources

ResourcesTypes & ClassifyingWhat is a Resource?A resource is an input into the productionprocess.A resource is something you can useA resource is something you use to satisfyyour needs & wants

Types of ResourcesResources can be either:RenewableCan be replaced, regenerated, replenished. (within human lifespan)Once used they can be used again.

Non renewable Not replenished or renewed within a human lifespan. Once used up there is no more.Renewable or Non renewable?

Classifying ResourcesWhat kind of Resource?

6The F.O.P Factors of ProductionResources can be classified further into thefactors of production.

LandAll natural resources when used as a factor ofproduction are called land.These resources can be renewable or nonRenewable

Land includes: Plants, Trees, Animals, Birds,Insects, Air, Sea, Water, Wind, Sun, Minerals,Rocks, Fossil Fuels, Sand etcLabourLabour is the physical effort in the productionProcess.

Labour includes: Builders, Teachers, Doctors,Dentists, Chefs, Labourers, Mechanics,Cleaners, Freezing Workers, Farmers etcCapitalMan Made resources used to create other goods& servicesSometimes called Producer GoodsCapital does not refer to money in Economics!Can be split into:Productive Capital Fixed Assets e.g. Buildings,Machines etcCirculating Capital Semi Finished Goods e.g.Nails, Hooks, hinges etc

Entrepreneurship/EnterpriseThe skills of decision making and risk taking.Management combines the F.O.P to produceG & S.Innovation comes up with new ideasExamples of Entrepreneurship include:Mark Ellis, Doc, Steven Tindall, Dick Hubbard,John Key, Dairy Owner/Manager, Bill Gates,Richard Branson, Peter Jackson, etc Factor RewardsIn return for use of the F.O.P each factor derives or earns an income.LandRentLabourWagesCapital InterestEntrepreneurshipProfit