Production Factors

Factor production 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.