Economic Factors

• Some of a country’s most important resources are its people.

• Countries need skilled workers to fill jobs within the economy.

• It takes different kinds of human capital to make different kinds of goods and services.

• For example, doctors, teachers, and factory workers all have a different set of skills and they each help to produce different goods or services.

• Capital goods are the man-made materials that are needed to produce goods and services.

• Some examples of capital goods include factories, machinery, technology, buildings, tools, etc.

• The more a country invests in its capital goods, the stronger its economy and higher the GDP.

• Natural resources are the materials that come from nature, such as land, forests, minerals, water, etc.

• They play an important role in a country’s economy because they are fuel for industry and are a source of income when exported to other countries.

• An entrepreneur is someone who takes risks to start a new business.
  

• Entrepreneurs produce fresh ideas for goods or services and then they use natural resources, capital goods, and human capital to bring those ideas to life.

• They help the economy grow by opening new businesses and developing new products, which creates more jobs.

Definitions

Human Capital: the knowledge and skills of the workers

Capital goods: Man-made materials that are needed to produce goods and services

Natural resources: Materials that come from nature, such as land, forests, minerals, water, etc.

Entrepreneurship: Someone who takes risks to start a new business