Businesses and factories use different economic resources to make and sell goods. An economic resource is something, such as a good or a service, that helps people meet their needs. Natural, human, and capital resources are all types of economic resources.
Natural resources are an important economic resource. Natural resources include water, soil, trees, farmland, and minerals. Businesses use different natural resources to make goods and provide services. Some businesses begin with a raw material. A raw material is a natural resource that people can use to make a good. Some raw materials that businesses use are metal, rock, wood, and water.
In Caldwell County, North Carolina, many businesses use trees that grow in the western part of the state. After these trees are cut down, businesses use the wood to make furniture. Then they sell the furniture to the public.
There are different types of natural resources. Natural resources can be living or nonliving. Plants, trees, and wild animals are examples of living resources. Nonliving resources include water, metal, soil, and minerals.
A nonrenewable resource cannot be made again quickly by nature or people. Minerals, such as emeralds found in North Carolina, are nonrenewable. It might take thousands of years for Earth to replace a mineral that has been used. Fuels, such as coal and oil are also nonrenewable. People burn fuels to make heat or energy.
In addition to natural resources, businesses depend on human resources. Human resources are the workers who produce goods and services. Without human resources, natural resources could not be made into goods.
Furniture businesses need many human resources. In 2005, more than 58,000 people in North Carolina worked for businesses that made furniture. Some workers raise and cut down trees. Others use the wood to make furniture. Another group of workers sells the furniture in stores. Other workers deliver the furniture to customers.
Businesses also use capital resources, or tools and buildings. The factories where businesses make goods are capital resources. The machines used to make and deliver goods are also capital resources.
Without these capital resources, furniture workers could not make furniture. Money is a capital resource. People who want to open a business need money to start the business. In North Carolina, business leaders, such as William Henry Snow, used their own money to help the furniture business grow. With money, these business leaders could start companies, buy machines and buildings, and hire workers.
