AKS 39b

Explore capital goods and natural resources and their role in economic growth!

What are Capital Goods? All of the goods that are produced in the country and then used to make other goods services Examples: tools, equipment, factories, technology, computers, lumber, machinery, etc. What are some capital goods used in our classroom? How do Capital Goods influence Economic Growth? The more Capital Goods a country has, the more goods services they are able to produceMoney is NOT a capital good, but rather a medium of exchange! What are Natural Resources? All of the things found in or on the earth; “gifts of nature”All resources are limitedExamples: land, water, sun, plants, time, air, minerals, oil, etc. How do Natural Resources Influence Economic Growth? Countries that have a lot of natural resources are able to use them to produce goods services cheaper than a country that has to import natural resources