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Factors Of Production

By Shaquille Shannon. Factors Of Production. Factors Of Production are the resources employed to produce goods and services. The Three classes of Factors Of Production is Land, Labor, and Capital. Land. Land is the entire material universe, outside of human beings and their products.

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Factors Of Production

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  1. By Shaquille Shannon Factors Of Production

  2. Factors Of Production are the resources employed to produce goods and services.

  3. The Three classes of Factors Of Production is Land, Labor, and Capital.

  4. Land • Land is the entire material universe, outside of human beings and their products.

  5. Quick Facts • Economically, "land" is far more than just plots of ground; it is all natural materials and opportunities.

  6. Labor • Labor is human exertion, mental or physical, in production.

  7. Quick Facts • Labor is a loaded term that is used in various ways. "Labor" can refer to the social class that stands in opposition to "Capital" -- or, "Labor" might refer to the organized labor-union movement.

  8. Capital • Capital is physical products of human labor that are used in production, or are in the course of exchange.

  9. Quick Facts • Capital tends to make labor more productive.Capital increases labor's ability to produce wealth (and services too). Therefore, there is always a demand for capital goods, and some labor will be devoted to supplying those goods, rather than supplying the consumer goods that directly satisfy desires.

  10. Conclusion • Each factor is plays a unique role in the production of goods, and each factor is clearly distinguishable from the other two. • Definition of the three distinct, interdependent factors of production is another important analytical tool that helps economists make sense of the processes of production and distribution in a complex society. Each is clearly different from the other.. The mutually exclusive nature of these categories is what makes them so useful.

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