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LESSON ONE Human resources are the quantity and FROM BOXES TO quality of human effort directed toward SHEEP producing goods and services. by Tiffany Brocious (USA), Ruth Cookson Capital goods are goods produced and used (USA), Joanna Stefaniak (Poland), Batima to make other goods and services. Tolebayeva (Kazakhstan) OBJECTIVES LESSON DESCRIPTION ♦ Define natural resources, human Productive resources are the natural resources, capital goods (capital resources), and resources, human resources, and capital goods intermediate goods. (capital resources) available to make goods and ♦ Give examples of natural resources, services. In this lesson, students participate in human resources, capital goods (resources) and two group activities that involve distinguishing intermediate goods. among types of resources and identifying ♦ Explain that people use resources and intermediate goods (ingredients) used in intermediate goods to produced different goods production. Through the activities students also and services. learn that people use resources in different ways to produce different goods and services. TIME REQUIRED AGE LEVEL Two to three class periods 9-11 years old MATERIALS • One small box with a lid for each group of 3 CONCEPTS to 4 students – each box wrapped with Productive resources colored paper and labeled “Production Box” Human resources • One pair of scissors, markers, and one Natural resources container of glue placed in each box Capital goods (capital resources) • Paper clips, rubber bands, paper, pine cones, Intermediate goods acorns, nuts, seashells, stones, rice, leaves, toilet paper roll placed in each box CONTENT STANDARD (Substitute available resources from your Productive resources are limited. Therefore, region.) people cannot have all the goods and services • Copy of Activity 1 for each student they want; as a result, they must choose some • Transparency of Activity 1 things and give up others. • Two sheets of drawing paper and markers or crayons for each group BENCHMARKS Productive resources are the natural PROCEDURE resources, human resources, and capital goods 1. Explain that students will work in groups available to make goods and services. to produce something. Divide the class into groups of 3 to 4 students. Give each group a Natural resources, such as land, are “gifts of Production Box. (See Materials section.) nature;” they are present without human intervention. 2. Have students open the boxes and name the things in the box. As students name items, list them on the board. From Resources A to Z, © National Council on Economic Education, New York, NY 1 LESSON ONE 3. Explain that all these items can be used 9. Explain that water, trees, coal, and sand to produce goods and services. Some items are are examples of natural resources. Ask for called productive resources, and some are called examples of natural resources found in the intermediate goods. production boxes. (seashells, rice, pine cones, acorns, stones, nuts, leaves) 4. Define intermediate goods as things that are made by people and used up in the 10. Define capital goods (capital resources) production of other goods and services. as things produced and used over and over to produce other goods and services. Explain that 5. Ask how many students have made the desks, school building, overhead projector, cookies. Explain that when people make and chalkboard are examples of capital goods cookies, they use flour. People make flour from (capital resources) used to produce education. wheat and can use it to produce other goods, These are things that were produced and are such as cookies. Flour is an intermediate good used over and over each day to produce because it is made by people and used up in the education. Ask for examples of capital goods production of other things. (capital resources) found in the production boxes. (scissors, marker) 6. Ask how many students have made a paper airplane (or another toy from paper). 11. Tell students that they will work in their Point out that people make paper from wood groups to produce products using the resources pulp and use the paper to produce other things, and intermediate goods in the production boxes. such as paper airplanes. Paper is an Emphasize the following. intermediate good. Discuss the following. • Each group may produce only one A. Give an example of an intermediate product. good found in the production boxes. • Groups will have 15 minutes to work. (paper clip, rubber bands, glue, toilet • Groups should be as creative as possible. paper roll, paper) • A group reporter should be prepared to B. Why is this item an intermediate good? tell the class about the group’s product. (It is something that was made by people, and it is something that will be 12. After 15 minutes, have each group share used up in the production of other its product with the class. Discuss the following. things.) A. What item(s) were used from the 7. Explain that other items in the production boxes to produce the goods? production boxes are productive resources. (Answers will vary.) Productive resources are the natural resources, B. Did any group use something not found human resources, and capital goods (capital in the production box to produce its resources) available to make goods and services. good? (Students might mention the building, desks, sunlight, etc. As 8. Point out that there are two types of students mention these items ask them to productive resources in the boxes, natural categorize the items as natural resources and capital goods (or capital resources, capital goods or capital resources). Natural resources are gifts of resources, or intermediate goods.) nature used to produce goods and services. C. If not mentioned, point out that students Natural resources are present in and on the earth were used to produce. without human intervention. 2 From Resources A to Z, © National Council on Economic Education, New York, NY LESSON ONE 13. Explain that people are a type of 18. Distribute a copy of Activity 1 to each productive resource, too. People are human student, and display a transparency of the resources. Human resources are the quantity activity. Explain that a sheep is a natural and quality of human effort directed toward resource. The picture identifies many parts of producing goods and services. Students were the sheep that are used to produce goods. Ask the human resources in this production activity. the following questions. As students respond, write the answers on the transparency in the 14. Ask students for examples of human appropriate box. Tell students to write the resources working at school. (teacher, answers on their copy as you write them. principal, cafeteria worker, janitor, nurse, librarian, bus driver) Discuss the following. A. What could be produced from sheep wool? [felt house (yert), blankets, A. What are the three categories of carpet, cloth, sweaters, bags, hat, productive resources? (natural scarves, felt boots, gloves] resources, human resources, and capital B. What could be produced from sheep goods or capital resources) leather? (sheepskin coat, fur coat, shoes, B. Give examples of natural resources. bags, belts, caps, gloves, riding tacks, (sunlight, water, trees, land) whips) C. Give examples of capital goods (capital C. What could be produced from sheep resources). (scissors, machine, excrement? (fuel for heating, fertilizer) computer, building) D. What could be produced from sheep D. Did every group produce the same bones? (buttons, jewelry, souvenirs, product? (No.) Why? (different wants toys) and different ideas) E. What could be produced from sheep milk? (yogurt, cheese, cream, butter) 15. Write the following statement on the F. What could be produced from sheep board, “As consumers, people use resources in meat? (ground meat, sausages, steaks, different ways to satisfy different wants. liver, fat for cooking) Productive resources can be used in different G. What could be produced from sheep ways to produce different goods and services.” stomachs? (bags for butter and yogurt) Explain that intermediate goods can be used in different ways for production, too. 19. Explain that students will work in their same groups. Each group will be assigned a 16. Point out that each group had the same natural resource, capital good (capital resource), items in its production box, but groups used the human resource, or an intermediate good. One items to make different products because people person in the group should draw a picture of the in the groups had different tastes, different resource. All members of the group should abilities, different ideas, and different wants. identify things that could be produced with the resource. One member of the group should list 17. Explain that there are many different all the products on a sheet of paper. uses for the same resource. For example, crude oil is a natural resource that can be used to 20. Distribute two sheets of paper and produce many different goods. Ask for markers or crayons to each group. Tell groups examples of goods that are produced from crude to select someone to draw the picture and oil. (gasoline, kerosene, petroleum jelly, plastic someone to write the list. Assign each group products, fibers) one of the following. From Resources A to Z, © National Council on Economic Education, New York, NY 3 LESSON ONE • Natural Resource: wood, water • Capital Good (capital resource): 4. Define natural resources. (“gifts of computer, truck nature” that are present without human • Human Resource: carpenter, teacher intervention) Give examples. (tree, land, • Intermediate Good: chocolate, steel water, coal, sand) 21. Allow time for groups to work. Have 5. What are intermediate goods? (things students share their work. Suggested answers produced by people and used up in the for each resource follow. production of another good or service) Give examples. (flour, butter, cloth, lumber) • Wood (fuel, furniture, shelter, toys, playground equipment, wagons, 6. Both natural resources and intermediate weapons) goods are used up in production. How are • Water (drinking, bathing, cleaning, intermediate goods different from natural putting out fires, cooking, swimming and resources? (People produce intermediate boating, fish habitat) goods.
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