Economic Resource
An Economic Resource is a resource/asset that can be used to produce goods and services that meets human needs and wants.
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- Example(s):
- a Factor of Production.
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- Counter-Example(s):
- See: Factors of Production, Natural Resources, Raw Materials, Human Resources, Labor Force, Infrastructure, Economic Decision Making, Output (Economics), Production Function, Land (Economics), Capital (Economics), Raw Material, Natural Resource, Human Capital, Labor Force.
References
2016
- (Wikipedia, 2016) ⇒ https://en.wikipedia.org/wiki/Factors_of_production Retrieved:2016-9-28.
- In economics, factors of production, resources, or inputs are what is used in the production process to produce output — that is, finished goods and services. The amounts of the various inputs used to determine the quantity of output according to a relationship is called the production function. There are three basic resources or factors of production: land, labor and capital. The factors are also frequently labeled "producer goods or services" to distinguish them from the goods or services purchased by consumers, which are frequently labeled "consumer goods". All three of these are required in combination at a time to produce a commodity.
There are two types of factors:
Factors of production may also refer specifically to the previously mentioned primary factors, (land, labor (the ability to work), and capital goods) applied to production.
Materials and energy are considered secondary factors in classical economics because they are obtained from land, labour and capital.
The primary factors facilitate production but neither become part of the product (as with raw materials) nor become significantly transformed by the production process (as with fuel used to power machinery). Land includes not only the site of production but natural resources above or below the soil. Recent usage has distinguished human capital (the stock of knowledge in the labor force) from labor. [1] Entrepreneurship is also sometimes considered a factor of production. Sometimes the overall state of technology is described as a factor of production. The number and definition of factors varies, depending on theoretical purpose, empirical emphasis, or school of economics.
- In economics, factors of production, resources, or inputs are what is used in the production process to produce output — that is, finished goods and services. The amounts of the various inputs used to determine the quantity of output according to a relationship is called the production function. There are three basic resources or factors of production: land, labor and capital. The factors are also frequently labeled "producer goods or services" to distinguish them from the goods or services purchased by consumers, which are frequently labeled "consumer goods". All three of these are required in combination at a time to produce a commodity.
- ↑ Paul A. Samuelson and William D. Nordhaus (2004). Economics, 18th ed., "Factors of production", "Capital", Human capital", and "Land" under Glossary of Terms.