4 factors of production and examples8/31/2023 ![]() ![]() Sea water Sea water in a seafood restaurant Sharks in the Atlantic Ocean Sharks at the Ocean Park ©2012, TESCCCġ5 Labor Any effort a person devotes to a task for which that person is paid. Limited in supply Land is immovable The supply of land involves no opportunity cost ©2012, TESCCCġ3 Capital Man-made resources used for further productionĮxamples: machines, raw materials, tools Features: Man made It raises the productivity of other factors ©2012, TESCCCġ4 Is it LAND or CAPTIAL? Ice at Mount Everest Ice in a skiing field ![]() ![]() Retrieved from ©2012, TESCCCġ0 Mexico’s Economic System: Free Enterprise/Free Market Economyĭefined: Inputs used in the production of goods and services Factors of Production Examples Land Entrepreneurs (People willing to invest) Capital: $$ Labor ©2012, TESCCCġ2 Land Natural resources Characteristics A gift of nature Territorial evolution of mexico since 1821 to (2009). (In Mexico– $14,700) Literacy: the ability to read and write (In Mexico ©2012, TESCCCĩ Mexico Image credit: (2009). (In Mexico– 1.1 trillion) Gross Domestic Product per capita: this indicates the people’s standard of living it is the country’s GDP divided by the number of people in the country. (In Mexico– 76) Gross Domestic Product: a measure of the economy the total market value of goods and services produced within a country per year. Life Expectancy: the average number of years remaining in the life span of a person. ©2012, TESCCCĨ What determines the level of economic development for a country? Service industries provide intangible goods directly to the public, not final products – maquiladoras in Mexico (they provide labor, but companies are not Mexican), tourism as one of biggest industries after oil production. – manufacturing in Mexico (Examples: clothing, toys, cars, houses, etc. ©2012, TESCCCħ Industries of Mexico Manufacturing industries may take raw materials, buy materials from wholesalers, or buy materials from a retailer to make new products. Lack of economic freedom (freedom to compete and protection of people) Corruption keeps the economy from growing because foreign investors are fearful of the instability. ©2012, TESCCCĦ Mexico’s Economy Mexico has increased (printed more) money supply creating inflation and a devalue of their money. ©2012, TESCCCĥ Mexico’s Government Three branches of government: Executive, Legislative and Judicial President is elected for only one term (serves a total of 6 years and may not serve again) Two political party system Unfortunately, corruption within the government decreases the number of outside investors. First, we need to understand the factors of production. Let us explore Mexico’s level of economic development. Retrieved from ©2012, TESCCCĤ Key Understanding Interaction between a country’s government, its economic system, and the factors of production often determines the level of economic development in a country. Retrieved from ©2012, TESCCCģ Diego Rivera Mural. 2 Contemporary cultures influence creative expressions ![]()
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