Answer:
The correct answer is: Economic Factors
.
Explanation:
The factors of production are the inputs that are used to produce other goods or services.
Producers transform production factors into goods or services using the technology they have available. Thus, for example, the baker processes inputs such as flour, water and salt, using mixing machinery and cooking ovens. This, in order to obtain a different product, bread.
Production factors fall into four broad categories:
Land: Includes all natural resources that can be used in the production process. For example, arable land, land for building, mineral resources (gold, silver or steel), as well as energy sources such as water, natural gas, coal, etc.
Work: It is the time that people devote to production. Thus, the hours of physical work of a farmer, the hours of study of a researcher or the hours of classes of a teacher, are all examples of this productive factor.
Capital: Includes durable goods that are used to manufacture other goods or services. Thus, for example, we have agricultural machinery, roads, computers, etc.
Technology: Refers to the set of knowledge and techniques that, applied in a logical and orderly manner, allow people to solve problems, modify their environment and adapt to the environment. This last factor is the most recent to be included in economic models.
It should be noted that technology is the factor that explains much of the progress of the modern economy. Technological advances have allowed a huge increase in factor productivity and with it the production and growth capacity of companies.
