Factors of Production (Economic Resources)

Name:______Due Date:______

Review: Scarcity and Resources

1. For each scenario below, circle whether the item in question is scarce or not scarce. a. Scarce or Not Scarce – Old Economics textbooks collected in a bookcase near the teacher’s desk with a sign that says “Free books, take as many as you want.” The books have been there for three years. b. Scarce or Not Scarce – Old Economics textbooks collected in a bookcase near the teacher’s desk with a sign that says “Free books, take as many as you want.” Another sign posted in the hallway says “$10 paid for any recycled textbook. Bring books to the Principal’s office. c. Scarce or Not Scarce – One economics textbook, five students who wish to do well in the economics course, and an important test in class the next day. d. Scarce or Not Scarce – One economics textbook, five students who are not taking economics, and an important test in the economics class the next day. e. Scarce or Not Scarce – Petroleum in Japan, a country without its own oil fields and without oil reserves. f. Scarce or Not Scarce – Petroleum in Saudi Arabia, a country with many oil fields and oil reserves.

2. One of the issues that drives the market is the fact that resources are scarce. Some resources are scarce in that they are rare, such as gold or uranium. Some are nonrenewable, such as oil. But all resources are scarce in that they require effort to make them useful to people. Even if there were an infinite supply of gold in the world, it would take time, labor, and other resources to mine gold and render it useful. From the list below, choose one resource that you know something about and answer the questions that follow:

Diamond Petroleum Titanium Wheat Iron Wood Cotton Coal Salt Phosphorus

a. Which resource did you choose? ______b. What makes this resource scarce?

c. Why is this resource useful to society?

d. How does society allocate this resource to individuals?

3. Draw and label a picture of each type of productive resource. 4. Classifying Factors – classify each term from the list below as either capital, human or natural resource. If you do not think that the item belongs in any of the categories, place it in the fourth column, non applicable and explain why you put it there.

Taxi cab CEO of General Electric River Salesperson Bank Teacher Cashier Baker School Bus Bitcoin Factory Flowers for your Sweetie In-focus Projector a $10 bill Air Skid Steer Apple Pie for Dessert Forest Credit Card Deer Tires Corn Iphone Coffee Mug Wheat

Natural Resource Capital Resource Human Resource Entrepreneurship Not Applicable (i.e. Trees) (i.e. Computer) (i.e. Bus driver) (i.e. Financial (i.e. Final Capital, Owner) Product)

5. Fill in the chart with a resource to show how each factor of production is used in producing the following goods and services.

Good or Service Land Labor Capital Kindle

Blu-ray DVD

Nike Sneakers

Economics Textbook

Pro Football Game

Apartment Building