RESOURCES are the basic elements used to create goods and services.

There are four types of productive resources. They are also known as FACTORS OF PRODUCTION.

1. Natural resources are those things that come from nature. Water, trees, minerals, etc.

2. Human resources are more commonly referred to as labor. It is the physical and mental efforts used to create goods and services.

3. Capital resources are the buildings, tools, and machines that are used to produce goods and services.

4. Entrepreneurship is the intelligence, the imagination, and the ability to take risks that is needed to start up and maintain a business.