Economic Resources

In this lesson, you'll learn:

what economic resources are
the different types of economic resources
why they are vitally important
If there are no resources,
an economy cannot be
sustained.
 Economy and Resource
Economy - is a system of institutions and
organizations that either help facilitate or are
directly involved in the production and
distribution of goods and services.
Resource - is defined as a service or other asset
used to produce goods and services that meet
human needs and wants.
 Economic Resources
Economic Resources - are the factors used in
producing goods or providing services.
 Goods
Goods - tangible products that we use to satisfy
our wants and needs.
books and automobiles
 Services
Services - work performed for someone else.
haircuts, home repairs, and entertainment
 Types of Economic Resources
1. Land
2. Capital
3. Labor
4. Entrepreneurship
 Factors of Production
Factors of Production describes the function
that each economic resource performs in the
business environment.
1. Land
2. Capital
3. Labor
4. Entrepreneurship
 Land Resources
is used to describe all natural resources which are
used in the process of production and yield
income.
these resources which are free gifts of nature
include agricultural land, forests, mineral
deposits, fisheries, rivers, lakes, oil deposits, etc.
 Land Resources
Consider a simple
product like a can of
chicken noodle soup.
What natural resources
were used to produce it?
The chickens,
vegetables, and spices
are the result of crops
and livestock grown
on rich farmland.
 Capital Resources
refers to all man made resources which aid to
production.
includes machinery, equipment, tools, factories,
storage, transportation, etc., which are used in
the production of new goods and supplying them
to the ultimate consumers.
 Capital Resources
How do capital
resources help make our
can of chicken noodle
soup?
Farmers use tractors
and other equipment to
plant and harvest crops,
and even to feed
livestock more
efficiently.
 Labor Resources
refers to human effort, physical and mental which
is directed to the production of goods and
services.
includes factory worker, clerk, typist, teacher,
doctor. Judge, physicist, etc.,
 Labor Resources
Many people, or human resources, are needed to complete
the work required to produce the product.
Farmers raise the livestock and crops. Factory workers and
managers use equipment designed by engineers and
manufactured by other businesses to process the food.
Truck drivers, salespeople, advertisers, and grocery store
employees are also involved in producing the product and
making it available to consumers for purchase.
 Entrepreneurship
Entrepreneurship - the activity of setting up a
business or businesses, taking on financial risks in
the hope of profit. (Oxford Dictionaries)
Entrepreneurs - individuals who start a new
business, introduces a new product, and improve
processes and take risks to make a profit.
Resoures are significant because:
They satisfy human wants both individual and
social,
They are a source or possibility of assistance,
They are a means of development and
support,
They are an expedient,
They have capacity to take advantage of
opportunities, and
One relies on them for aid, support and
 Prepared by:
Marianne Hilario
Prema Joy Tangonan
BEed III-B