3. Tangible GOODS
Goods may be tangible when
they are materials or
commodities. In a simple
sense, these are the
materials or commodities
that can be touched.
4.
5.
6.
7. intangible GOODS
Intangible services like
those rendered by the
doctor the teacher,
painter, beautician and
even the prostitutes are
all used in the satisfaction
of human wants and needs.
8.
9.
10.
11.
12. Goods which are yield
directly, just like
softdrinks and foods.
consumer
GOODS
43. Although some natural resources, such as timber, food
and animals, are renewable, the physical land is usually a
fixed resource. Nations must carefully use their land
resource by creating a mix of natural and industrial
uses. Using land for industrial purposes allows nations to
improve the production processes for turning natural
resources into consumer goods.
45. Human capital includes all able-bodied individuals
capable of working in the nation’s economy and
providing various services to other individuals or
businesses. This factor of production is a flexible
resource as workers can be allocated to different
areas of the economy for producing consumer
goods or services.
46. Human capital can also be improved
through training or educating workers
to complete technical functions or
business tasks when working with
other economic resources.
47. CAPI
TAL.
Capital has two
economic definitions
as a factor of
production. Capital
can represent the
monetary resources
companies use to
purchase natural
resources, land and
other capital goods.
49. Capital does not only
include money, it also
includes buildings,
machinery, raw materials
and other physical
necessities for the use
of production.
50. Savings refers to the part of person’s income which is
not spent on consumption. It is therefore involves a
sacrifice because consumption has to be given up for
one to save. Capital is therefore an economic good and
the owner of the capital earns income for its use. This
income is called interest.
51. For instance, if you
bring your money to
the bank for deposit,
it earns interest
because you are
actually lending
capital to the bank.
52.
53. Entrepreneurs is
considered a factor of
production because
economic resources
can’t exist in an
economy and not be
transformed into
consumer goods
without it. He is the
person who combines
the other resources
54. TYPES OF ECONOMIC SYSTEM
The Traditional
EconomyThe Command
EconomyThe Market
Economy
58. It is seldom that a economic
system exists in pure form. The
United States economy is
predominantly market, but it
cannot be denied that there exists
some form of governmental control.
Cuba has best described as
command since its decisions are
59. 0
1
2
3
4
5
1 2 3 4 5 6 7 8 9
THE PRODUCTION POSSIBILITIES FRONTIER
No.ofpapers(expressedasmillions)
No. of trees to cut (expressed as thousands)
60. SOCIETY’S
TECHNOLOGICAL
POSSIBILITIES
Since the nation has limited resources, it
has to cope by choosing different
potential bundles of goods. It has to
choose among the production techniques
and who will consume the goods ad services
61. Inputs refer to the commodities or
services used to produce the good or the
service. Existing technology is used to
combine these different inputs. Inputs
consist of land, labor and capital.
62. Outputs refer to
useful goods and
services
resulting from
the production
process. These
are goods that
are either