Intro terminology

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Intro terminology
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The four

• Factors
• Of
• Production
• L.L.C.E.

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Resources fall into 4 categories

• Land
• Labor
• Capital
• Entrepreneurship

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LAND physical space

• Natural resources
• Renewable and Non-renewable
• To provide food, clothing, shelter
• 1. Apple orchard
• 2. city lot, gasoline
• 3. city lot

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Labor

• Human sweat and skill
• 1. Apple pickers time
• 2. gas station attendants time
• 3. computer programmers time

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Capital

• The equipment and structures used to produce
  goods and services
• Goods produced in the past, being used in the
  present, to produce new goods and services
• 1. Ladders, baskets, trucks bag of apples
• 2. Gas station, pumps, lifts full tank
• 3. Office building, computers new software

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Entrepreneurship

• The process of bringing together the three
  factors of production (L, L, C)
• A risk taker
• Inventor, innovator, organizer
• Introduces new or improved
• Products,
• techniques,
• management

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GOODS AND SERVICES

• BUSINESS FIRMS
• SELL FINISHED
• GOODS AND SERVICES
• TO HOUSEHOLDS

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Goods

• products or commodities,
• Physical or tangible
• A SCISSORS

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Services

• actions or activities
• INTANGIBLE GOODS
• Provided, Cannot be resold
• A HAIRCUT