Factors of Production.
Further Explanation:
There are four factors of production land, labour, enterprise and capital. It is further classified as primary and secondary factors. The primary factors are there labour, land, enterprise and capital. The secondary factors of energy and materials because they help in obtaining the primary factors. The role of primary factors is in facilitating the production but it does not take part of the production.
In economics, there are different factors of production that leads to producing output. The inputs, resources and factors of production are used in the production process to produce output. The output is the finished goods and services.
Capital stock includes machinery and tools. There are other factors also like human capital that include skills and education. Intellectual capital and social capital contributes towards service to the society while producing goods and services. Some companies also do Social Services.
The land is a natural resource used in the production process. The labour force is often called human capital. Technology and innovation also contribute to the production process. The natural resource for the land includes water, soil, air. The payment to the landowners is either rent or loyalties. Labour includes marketing and technical expertise. The payment is done through wages. Labour contributes in physical as well as mental way.
Learn more:
1. In which system of government would states function independently of each other?
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2. In McCulloch v. Maryland, what did the state of Maryland argue?
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Answer Details:
Grade: High School
Subject: Social Science
Chapter: Factors of Production
Keywords: Land, labour, enterprise, capital, human capital, technology, innovation, marketing, technical expertise, intellectual capital, social capital.
