<aside> 💡 From this lesson, you must know…
Productive resources are the requirements for producing goods and services in an economy. Often economists call these 'factors of production'.
Resources provided by nature that people use to create goods and services.
Examples include oil, the local plants and animals, and the local climate.
Manufacturing is often located close to these natural resources.
Countries closely manage these natural resources with permits or license because they are often limited.
Goods and services used to make other goods and services, not to consume.
Examples of infrastructure include electricity grids, telecommunication networks, roads, airports, and railroads.
These systems are expensive to build and maintain. Without infrastructure, economic development is impossible.
Human labor including manufacturing, planning, studying, and training.
This includes all of the laborers, specialists, teachers, doctors, and people in the work force.
Labor (workers) are usually divided between unskilled and skilled workers. The more developed a country is, the more likely it is to have a large base of skilled workers.
Literacy rate is critical. Countries with a high number of skilled workers usually lead to centers of advanced manufacturing (e.g. electronics).
Business owners, investors, or managers that organize productive resources.