What are the factors of production?
Production factors are the term often used by economists. It refers to categories that can be used to classify items that are needed if the goods and services are to be provided. Three categories-interference, work and investment goods-consist of a wide range of natural and artificial items. Production factors are three wide categories that include everything that is inserted into the creation process, whether the result is tangible or intangible. Great -tangible creations are commonly referred to as goods and intangible creations are generally services. This means that if all production factors are not available, the creation cycle cannot be completed. The first category is usually recognized by a country, which may be disadvantages of the provider and accommodationer.
The items in this category are not only referred to the Earth's solid surface. In this category there are other components of the environment such as water, sunlight and minerals. Without land, no raw products would be provided from which finished products could be made. Creation created by man tooOhlo to be accommodated because there would be no place to produce or provide services.
In this sense, one of the unique land characteristics is that it is the only category that includes renewable and non -renewable sources. For example, trees and sunlight are sources that will be naturally replaced. Coal and land lands are examples of resources that cannot be replaced.
Labor concerns human efforts used to produce things. If people did not participate in the creation process, raw products would not become complex goods or services that are used every day to satisfy our needs and desires. Production requires many different types of work, some of which are not physical. Some people's contributions are mostly mental. This can be seen when comparing a construction worker and an analyst.
the final factors of production is capital, which are creations that help maintain růžT process of creation. For example, the provision of many services is based on technology. The cycle analysis shows that people use raw material to produce technology, which is then used for other purposes that contribute to the economy. The same cycle applies to goods. People remove metal and rubber from the environment to make machines that are used to produce retail products.