types of goods

Good – is anything that satisfies human wants and needs

Types of Goods

Free Goods – these are goods provided by nature. Examples of free goods are air, sunlight, rain water, etc. Economic Goods – are goods made by man. There are two types of Economic goods. First is the Consumer good that is also known as the Final goods – are goods which directly satisfy human wants. Examples of these are food, clothing, shelter, etc. second type is the producer or capital goods that are goods which will be used to produce other goods. Examples of these are machinery, tools and raw materials.

factors of production

These are what I learned from my Economics (land reform and Taxation)

Factors of production

1.land –refers to the gifts of nature or the natural resources
2.labor – refers to the man power or the exertion of human effort to acquire an income
3.capital – refers to produced goods which will be used to produce other goods

Is money a capital?

NO! Money is an instrument used to acquire land, labor and capital to produce goods.

4.entrepreneur - is the one who combines land labor and capital to produce goods for profit