![]() ![]() YearĪll societies possess a set of resources that can be placed in these categories. Like labor, entrepreneurship is a human input factor but it refers to more than just work it refers to the creativity and initiative needed to start a business, develop new goods and services, or improve on the development and distribution of existing products. Technology refers not just to robots and computers but to the entire body of knowledge or science that informs or improves a production process.Īnd finally, some economists also include entrepreneurship as a factor of production. Many economists also identify a fourth factor of production: technology. Labor refers to the human input invested in the production process it is the human effort exerted when a lumberjack uses a chainsaw (capital) to cut down a tree (land). Capital includes types of property, such as machinery and tools, that can be used to produce things. Trees, game animals, water, minerals-these are all included in the economic concept of land. ![]() Economists define land as all natural resources. ![]() Traditionally, these factors of production are identified as land, capital, and labor. Time is also a resource that we must choose how to spend.Įconomists traditionally also identify several factors of production that must be constantly prioritized and allocated. Money, or income, is just one of several scarce or limited resources we have to decide how to use wisely. And it is (on both counts).īut economic choices involve more than just money. People think economics is about dollars and sense. ![]()
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