Almost everyone has been a part of our economic system at some point in their lives. For me, it was running a lemonade stand. As a child, I did not realize that something as simple as selling a cup of lemonade was part of our economic system. There are four factors of production inputs in which are used to make a profit and contributed to the economic system.
Land- this is the physical place where the economic system begins. For an example, my lemonade stand which was constructed on my front lawn. In addition, I used the lemons from our lemon tree to make the lemonade; which is also part of the land. Therefore, using a natural resource caused me to limit how much lemonade I would sell so I did not use all the lemons off the tree.
Labor-Transforms
Land- this is the physical place where the economic system begins. For an example, my lemonade stand which was constructed on my front lawn. In addition, I used the lemons from our lemon tree to make the lemonade; which is also part of the land. Therefore, using a natural resource caused me to limit how much lemonade I would sell so I did not use all the lemons off the tree.
Labor-Transforms