Title: Distinguish among the factors of production.
Course: Principles of Business and Marketing (12051-36) > Section: Understanding the Role of Economics in a Global Economy

Distinguishing among the factors of production (i.e., economic resources) should include the following:

- Land—all materials that come from the earth
- Labor—all people who work to produce goods and services
- Capital—the tools, equipment, buildings, and financing necessary to produce goods and services
- Entrepreneurship—the generation of ideas and assumption of risk

Process/Skill Questions:

- What are economic resources?
- What are the differences among land, labor, capital, and entrepreneurship?
- Is it possible to produce a good or service using only one resource? Why, or why not?
- What is the effect of entrepreneurs on the economy as a human resource?
- What is the effect of technology on the factors of production?
- Who was Adam Smith? What were his thoughts on the division of labor?
- What is productivity? How can businesses utilize their resources to increase productivity?