The Four Factors of Production in scotchs
By Mark Kennan, eHow ratifier
Economic resources are scarce relative to the infinite take and wants of people and businesses operating in the economy. It is important to use these resources efficiently in order to maximise the output that can be produced from them.Â
Economists make a distinction between three types of resources - land, tug and outstanding.
A tractor is an example of capital.
One topic of study in economics is how and why different amounts of different goods are produced in an economy. Economists who study why one area produces more poke give way a nonher produces computers, or why one rural has more small businesses while another has only state-run corporations, go forth look at the four factors of production to help take on their inquiry. The four factors of production in economics are land, labor, capital and entrepreneurship.
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* Land refers to the natural resources that are available and apply in the production of goods.
For example, a heavy mining manufacture could not exist without the natural deposits of valuable minerals in the ground, while a thriving farming community would have a hard time surviving with poor soil and no rainfall.
* Labor refers to the human inputs of work to produce the goods and services. For example, the training demand for employees to successfully operate machines to produce cars would be considered as part of labor. In addition, the mental capacity to perform tasks and invent unsanded products is also part of labor. The only human element not included in labor is entrepreneurship.
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* Capital refers to the...If you want to feel a full essay, order it on our website: Ordercustompaper.com
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