Lesson 9 pg. 30 - 31

Question 1

Describe natural resources as a factor of production

Answer 1

> first factor of production
includes land and other raw materials
essential for most enterprises
what a particular piece of land costs is determined by scarcity and productivity of land in that particular area
land is cheap only in regions where population is scanty and there exists few profitable uses to which land might be put
land becomes valuable when human resources are applied to it

Question 2

List and describe the the different categories of raw materials

Answer 2

> mineral - such as precious metals, uranium, copper, lead, iron, tin, silver, and gold
fossil fuels - raw materials that we mine or pump beneath earth’s surface, such as petroleum, natural gas, coal, have been derived from plants
water
raw materials may also be derived from animals and plants