What are the factors of production

Among the property factors of production are raw materials and capital, human - labor and entrepreneurial ability. All these factors are interchangeable, due to limited resources. They can be used in various combinations and proportions.
All factors of production (economic resources) bring profit to their owners in the form of rent (from the land), percent (from capital), wages (from labor) and profits (from entrepreneurship).

Natural resources

Natural resources include land, minerals and water. This is all that nature has granted to the use of man. Natural resources are raw materials in production.
The natural factor reflects the influence of nature on the production process and the use of natural sources of energy and raw materials in it. Despite the importance of this factor, it is a passive element of production.

Investment resources

Investment resources are also called capital.Among them are buildings, structures and equipment. Investment resources are not only factors of production, but also its sources. If assets (financial resources) are directed into the sphere of production, then they are also called investments.
Capital may be presented in various forms. For example, in the form of fixed assets that can join working capital (working capital). What sway financial capital (securities), it does not apply to factors of production, because not included in the real economy.

Labor force

Labor resources are a separate category of production factors, including the physical and mental abilities of people. The labor factor in the production process is represented by the workers employed in it. When labor is combined with other resources, the production process is initiated.
The importance of labor resources in the production process is due to the fact that its course and the final result depend on them. The labor factor affects the efficiency of production not only in the amount of labor, but also in the quality and efficiency of labor.That is why, in addition to the labor factor, the criterion of productivity is used in the analysis.

Entrepreneurial talent

Entrepreneurial ability is a factor that binds all production resources. This is the ability to competently organize the production process, make optimal management decisions, as well as introduce innovations in production and carry out modernization.

Date: 09.10.2018, 12:44 / Views: 95244

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