Generatingwealth[1]
- 1. Generating Wealth to Support a Living Standard
- 2. Wealth can only be created from physical and human resources Such as the skills of workers and the minerals in the ground
- 3. A resource can only be obtained if: People know about the resource And They know how to use the resource oil and gas mean nothing to a primitive tribe in the Amazon
- 4. Resources are also known as Factors of Production Land-meaning natural resources Capital-meaning money, equipment Labour- also includes the education or skill development Entrepreneurship-management of resources & capital
- 5. To create wealth all the factors of production have to be brought together. Then they are combined into products and services that will be bought by consumers. That is how the economy works.
- 6. Land Land also includes all natural resources that we use. This can be in their natural state-like fish, water, animals Or those that must be refined-oil, minerals
- 7. Labour Labour is the work done by people in the making of products An industrial nation needs a large labour force It must be one that is skilled and can operate with highly developed technology
- 8. Captial Capital meaning money and equipment is a necessary part It is used to invest in new companies, pay wages, taxes and build new structures.
- 9. Entrepreneurship This is the skills some people have to organize all the resources, labour and capital so that goods and services can be produced and sold. Think of dragon’s den
- 10. Infrastructure This is the physical thing that connects the FofP together. Roads, hospitals, schools, trains, trucks, planes,government When all this is in good working order a high standard of living exists for that country.
- 11. Gross Domestic Product Gross Domestic Product known as GDP is the value of all goods and services produced in one year in a country. It is the international standard measurement of the overall size and wellbeing of a country’s economy.
- 12. GDP When the GDP is higher than last year this is a sign of a strong economy. If the GDP declines then it is a sign of a weak economy It is a limited measure-doesn’t look at quality of environment, health, human rights