Q Discussion Assignment: The Factors of Production are the resources a state or corporation use to produce goods and services. The quantity and quality of a nations resources (and their ability to "put them to use") will establish the standard of living. Review the video above and click on the links below to gain a better understanding of the Four Factors of Production and how they can be put to use. The Factors of Production are scarce so the market will construct an allocation system to distribute the items. • Capitalism- Highest Price • Socialism-Populism- Public Good • Communism- Government Objective The Factors of Production (Resources)-Link to Investopedia (Links to an external site.) • Land • Labor • Capital o Physical Capital (Links to an external site.) o Human Capital (Links to an external site.) o Money-Financial Capital (this is NOT a Factor of Production-You can't produce anything with money • Entrepreneurial Ability The Resource Payment is the value that is received for the use of the Factor. Factors of Production (Resources) Resource Payments Land Rent Labor Wage Capital-(Physical and Human) Interest Entrepreneurial Ability Profit Human Capital v. Physical Capital- A quick read on the difference (Links to an external site.) Physical Capital are items that are "used to make other goods" or produce a "rate of return." A farmer with a hoe is very slow to plant crops. The plow was created to speed up the process. A tractor dramatically speeds up the efficiency of the system. Today we have robotics and drones working on farms to increase the productivity of the farmer. This is the application of capital. Financial Capital is savings (loans) that is used to purchase Physical Capital and Human Capital. An entrepreneur will put Capital "to work" to produce goods and services. The quantity and quality of Capital is a fundamental to the economic growth of a community or nation. Human Capital is not just an academic education (College, MBA, JD) but also levels of skill to produce a good or a service. The goods and services that are in the highest demand will pay the top salaries for the "use" of the skill. A worker is paid a wage for the use of their labor. Discussion Question: Use examples to illustrate your comments- Be as creative as you wish. • Define and discuss Physical Capital and Human Capital. • How does capital contribute to the economic growth and resilience of an economic state. • What is the status of Human Capital in Silicon Valley? How does that impact the productivity of the region? Discussion Question Requirements: Each student is required to post a 150 word response to the question. The student then must post at least a 50 word response to at lease ONE other student post. Post-=4 points. Comment = 2 Points Submit Original Post by the Due Date. Comments are open for four (4) days after the Due Date or until the Available Until Date How to Participate and Answer Discussion Questions