PRODUCTION

HOW TO PRODUCE

AT THE END OF THE LESSON,

WE SHOULD BE ABLE TO

define production
appreciate the value of the factors of
production

PRODUCTION

use of resource to
create goods and
services

FACTORS OF PRODUCTION
Capita
l
Land

Labor

Entreprene
ur

FORMS OF INCOME
Interes
t
Capita
l
Rent
Land

Labor
Wage

Entreprene
ur
Profit

CIRCULAR FLOW OF
GOODS, SERVICES, AND
RESOURCES
INPUT MARKETS and OUTPUT MARKETS

GOODS AND SERVICES

FACTORS OF
PRODUCTION
HOUSEHOL
DS

FIRMS

FORMS OF INCOME
FIRMS REVENUE

SAVINGS AND INVESTMENT

Savings
(Househol
ds)

Loans
(Banks)

INTEREST

Capital
(Firms)

What is the relationship of

consumption and production? List
down your observations based on
the circular flow of goods, services,
and resources.

MACROECONOMIC
EQUILIBRIUM
attained when both sectors are in
balance in the amount that they
buy and sell in the input and
output markets
when this does not occur, the
result is disequilibrium

What is my

slavery
ww.slaveryfootprint.org
footprint?
Online activity. Visit the website
and do the activity. Take note of
your result and write a short
reflection on your notebook.