APPLIED ECONOMICS

ECONOMIC RESOURCES OR FACTORS

 REVIEW:
__________________ goods which are useful
and scarce; with value attached to them and a
price has to be paid for their use. If a good is
so abundant and it can satisfy everyone’s needs
without anybody paying for it, then, that good
is free. The air is free, but the air from an
aircon is an economic good.
 REVIEW:

____________ used to satisfy

the basic needs of man
 REVIEW:
___________ goods man may
do without, but may give
comfort and satisfaction.
 ECONOMIC RESOURCES
OR FACTORS
Economic resources are the factors of
production for goods and services. The factors
of production are inputs combinations in the
production of goods and services to make an
economic profit for the firms. These factors of
production are land, labor, capital, and
entrepreneurship.
 ECONOMIC RESOURCES
OR FACTORS
Resources are limited in nature, but human
wants and needs are unlimited, thus, an efficient
allocation of these resources or factors of
production is a big challenge for every
economy.
 ECONOMIC RESOURCES
OR FACTORS
Economics also helps the entrepreneurs and the
economy to allocate resources in the production
of supplies to meet the demands of the
consumers.
 LAND AS A FACTOR OF
PRODUCTION
Land - natural resources available to create
supply such as raw materials that comes from
the ground. It can be a nonrenewable resource;
commodities
 LAND AS A FACTOR OF
PRODUCTION
such as oil and gold; and renewable resource,
such as timber. Oil is a natural resource, but
petroleum gas is a capital good. Farmland is a
natural resource, but a shopping center is a
capital good. (Amadeo, k. 2019)
 LABOR AS A FACTOR OF
PRODUCTION
Labor is the work done by people- education,
skills, and motivation and productivity.
Productivity measures how much each hour of
worker time produces in output. Workforce
receives wage for his labor.
 CAPITAL AS A FACTOR OF
PRODUCTION
Capital or capital goods are capital – the money
that companies used to buy resources; manmade
objects like machinery, equipment, and
chemicals that are used in production. For
example, capital goods include industrial and
commercial buildings. A commercial aircraft is
example of a capital good.
 ENTREPRENEURSHIP AS A
FACTOR OF PRODUCTION
Entrepreneurship develops an idea into a
business. An entrepreneur combines the other
three factors of production to add to supply. The
most successful entrepreneurs are innovative
and risk-takers. The income entrepreneurs earn
is profits.
 CHARACTERISTICS OF
RESOURCES:
1.Scarcity: insufficient resources to supply
all the desires and needs of individuals. In
the production of goods and services;
 CHARACTERISTICS OF
RESOURCES:
2.Multiple use: Resources can have more
than one possible use.
 CHARACTERISTICS OF
RESOURCES:
3.Partially replaceable: one resource can
replace another in the production of a good
or service
(PICTURE ANALYSIS)
ACTIVITY:
DIRECTIONS: READ THE STATEMENTS
CAREFULLY AND IDENTIFY THE FF:

The ABM Manufacturing Co. hired a gardener. He

uses a lawn mower for landscaping. Which factor of
production would you consider this machine?
ACTIVITY:
DIRECTIONS: READ THE STATEMENTS
CAREFULLY AND IDENTIFY THE FF:

The owner of the company withdrew cash for the

salaries of the employees. Which factor of
production would you consider cash on hand?
ACTIVITY:
DIRECTIONS: READ THE STATEMENTS
CAREFULLY AND IDENTIFY THE FF:
The top manager of the firm said “the great ideas
and emotional determination”, a person has to
produce something that consumers want to buy” is
very important for the company. What factor of
production describes the ability to create great
ideas?
ACTIVITY:
DIRECTIONS: READ THE STATEMENTS
CAREFULLY AND IDENTIFY THE FF:

The farmers planted pineapple cuttings in the

vacant area located in their locality. Which
factor of production would you consider a
pineapple plantation?
 QUIZ:
_____________________ one resource
can replace another in the production of a
good or service
 QUIZ:
__________________ the money that
companies used to buy resources;
manmade objects like machinery,
equipment, and chemicals that are used in
production.
 QUIZ:
__________ is the work done by people-
education, skills, and motivation and
productivity.
 QUIZ:
_____________ natural resources available
to create supply such as raw materials that
comes from the ground.
 QUIZ:
___________Resources can have more
than one possible use.
 REFLECTION:
I have learned that . . . . . . . .