Production Factors

Factors of production are resources used to produce goods and services. It
classified into three categories which are described below.

land
The primary resource for the production of goods and services provided by
Nature . Everything that is born of the land is used for processing and
become useful to humans for their use and benefit.

work
It translates to the time and effort that people devote to develop
goods and services, including physical and mental effort of everyone who works
in the countryside, towns , shops, etc. .

capital
Capital is defined as the set of tools, equipment , machinery,
buildings and other constructions that businesses use to produce
goods and services.

It is the knowledge and skills that people get their education and
experience , through training. Quality required for the
products and services derived from it can do well in the
market skills.


What enrich a nation be economically capital
human. The better prepared a country in education , the better
opportunity to compete on the world market have , since the total
its population has education, training and work experience.


Human Capital
For example , at this time all of you are acquiring knowledge
microeconomics of matter , ie , developing human capital ,
which in the future will enrich their professional experience. Therefore, the
human capital increases as time passes


Financial Capital
Included in cash , bonds and equities. Allows businesses to take loan funds
used to acquire capital. Therefore, as a reflection, it can be said that financial capital is a resource
used indirectly to produce goods and services. And not being an action directly
is not considered productive capital.