Module: Economic Thinking
Below are the key points from the video:
There are four productive resources (resources have to be able to produce something), also called factors of production:
- Land: any natural resource, including actual land, but also trees, plants, livestock, wind, sun, water, etc.
- Economic capital: anything that’s manufactured in order to be used in the production of goods and services. Note the distinction between financial capital (which is not productive) and economic capital (which is). While money isn't directly productive, the tools and machinery that it buys can be.
- Labor: any human service—physical or intellectual. Also referred to as human capital.
- Entrepreneurship: the ability of someone (an entrepreneur) to recognize a profit opportunity, organize the other factors of production, and accept risk.