production is a complex process that depends on many factors.To compile a simplified model of the economy, however, it decided to allocate four main factors, without which production is not possible, in principle, in the present conditions.This should not be confused economic factors of production and so-called harmful and dangerous production factors , which include: dust, bright light, dangerous gases, etc.From an economic point of view factor - is the feature defined by the role that it plays in the production process.
Analyzing all existing factors of production in the economy, namely, labor, land, capital and entrepreneurial factor, it is impossible not to note that the most important among them is human labor.In the old days, when there were no cars in principle work, in fact, it was the only factor, and that determines the cost of labor of a good.Today, however, a person's role in the production process, in view of production automation, reduced substantially.On the other hand, the same machines manufactured by direct human intervention, which, moreover, serves them and organizes records the sale of products and production.Thus, the role of labor remains high and to the era in which all the duties of man will handle the car, we are still far.
Especially that the very production equipment in the factors of production in the economy not included.Since the equipment is purchased for cash, it can be combined with the raw materials and materials, patents, etc.In general, anything that is bought for money, and it is necessary for the production process itself is determined by such factors as capital.Capital also represents cash investments to be carried out in order that people can work in the production and increase added value.The role of capital is still controversial, as supporters of leftist political ideas insist that capital is nothing other than the work, taken away from workers through the mechanism of profit.
should not be confused with the capital factor as the earth.Features demand for factors of production: labor and capital, similar to the market pricing mechanism does not operate in relation to the ground.Earth called everything that belongs to nature.Thus, nature provides us with the area under production and mineral resources, and is deeply involved in the production cycle.The main feature of this factor is that it exists in a limited amount, so with the help of market mechanisms, people should determine for what needs to be used natural heritage.
Finally, entrepreneurial factors included in the factors of production in the economy of the latter, it defines the role of business in the manufacturing process, ready to take risks and able to organize the process.The entrepreneurial factor is intended to explain the excess profits exist in capitalism, ieprofits exceeding the normal charge for capital.The high profits of the enterprise is considered to be justified, as this, according to proponents of market capitalism - the merit of the entrepreneur, who was able to effectively organize a process or who had gone to considerable risk.However, this factor today is not universally accepted by economists.
But some economists, by contrast, tend to further expand the production factors in the economy and include the time here, idea, etc.Thus, the question of the factors so far is highly controversial, and its interpretation largely depends on political views.
