Resources

Types & Classifying

What is a Resource?

A resource is an input into the productionprocess. A resource is something you can use A resource is something you use to satisfyyour needs & wants

Types of Resources

Resources 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 Resources

Resources

Natural Human Man Made

What kind of Resource?

The F.O.P – Factors of Production

Resources can be classified further into thefactors of production.

Resources

Natural

Land

Human

Labour

Enterprise

Man Made

Capital

Land

• All 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 etc

Labour

Labour is the physical effort in the productionProcess.

Labour includes: Builders, Teachers, Doctors,Dentists, Chefs, Labourers, Mechanics,Cleaners, Freezing Workers, Farmers etc

Capital

• Man Made resources used to create other goods• & services• Sometimes called “Producer Goods”• Capital 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/Enterprise

The 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 Rewards

In return for use of the F.O.P each factor “derives” or earns an income.

Land RentLabour WagesCapital InterestEntrepreneurship Profit