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Economy - Coggle Diagram

- - - - Labour is the second factor of production. Labor is the work that people put in to produce goods and services. Labor resources include the waiter who brings your food at a local restaurant and the engineer who created the bus that transports you to school. It comprises the work of an artist who created a painting as well as the effort of the pilot who flew the airplane overhead. You have contributed labor resources to the production of goods or services if you have ever been paid for a job. Wages are the earnings generated by labor resources and are the primary source of income for the majority of individuals. https://www.stlouisfed.org/education/economic-lowdown-podcast-series/episode-2-factors-of-production
    - - Land is the primary factor of production, but this includes any natural resource used to produce goods and services. This encompasses not only land, but also anything derived from it. Water, oil, copper, natural gas, coal, and forests are examples of common land or natural resources. Land resources are the raw materials used in the production process. Renewable resources, such as forests, or nonrenewable resources, such as oil or natural gas, can be used. Rent is the income earned by resource owners in exchange for land resources.https://www.stlouisfed.org/education/economic-lowdown-podcast-series/episode-2-factors-of-production
    - - An entrepreneur is someone who integrates the other factors of production – land, labor, and capital – in order to make a profit. Entrepreneurs that invent new ways to produce goods and services or develop new goods and services to bring to market are the most successful. Many of the inventions we see around us would not exist if entrepreneurs did not combine land, labor, and capital in novel ways. Entrepreneurs are a critical engine of economic growth, helping to build some of the world's largest corporations as well as some of your neighborhood's small enterprises. Entrepreneurs thrive in economies that allow them to start businesses and freely purchase resources. The payment to entrepreneurship is profit.
    - - Consider capital to be the machinery, tools, and structures that humans use to produce goods and services. Hammers, forklifts, conveyer belts, computers, and delivery trucks are all examples of capital. Capital varies depending on the worker and the sort of work performed. A doctor, for example, may give medical services using a stethoscope and an examination room. To provide education services, your teacher may employ textbooks, desks, and a whiteboard. Owners of capital resources earn interest as a source of income.https://www.stlouisfed.org/education/economic-lowdown-podcast-series/episode-2-factors-of-production