Factors of production are important characteristics of production activity

To give a correct definition of the factors of production, it is first necessary to understand what the very definition of production is that characterizes the process of manufacturing all kinds of material goods. Therefore, to implement such a sequence of actions, a person needs to influence different objects of the surrounding world in order to give them the required parameters suitable for the implementation of the tasks set. Thus, factors of production are the most important elements that have a significant influence not only on efficiency, but also on the very possibility of organizing production activity.

At present, several approaches to the definition of the concept of "factors of production development" are singled out. Following the judgments of K. Marx, it is possible to allocate means and an object of labor, as well as labor. Nevertheless, the first two concepts can be combined into one group, called the means of production.

Thus, factors of production are a combination of material and personal factors. Such an association is carried out in the form of organization and management of the enterprise through incentives for employees through payment. Nevertheless, the effectiveness of such interaction is also characterized by various specific factors, for example, the technology used and the rational organization of the work of the enterprise.

In turn, neoclassical theory defines production factors as economic elements of interaction, such as capital, land and labor. Let's consider each of them in more detail.

Capital - a collection of benefits that have an artificial origin. At the same time, this definition implies that all of them should be involved in the production process. The concept of "capital" can include monetary assets, buildings and buildings, as well as various vehicles. The process of manufacturing and accumulating these funds is characterized by investment. Such factors of production are a combination of several concepts: monetary, material and the theory of "human capital".

The earth is a natural resource that has not been man-made. This category includes mineral resources, forests, soil, etc. The use of land can be diverse, but the bulk of the resource presented is most often used in the agricultural sector. Such factors of production are means possessing certain properties. For example, natural resources that have resources from the beginning, and artificially created, which arose due to human activities (melioration, irrigation, fertilization, etc.).

Labor can be represented by physical and intellectual manifestations of human effort. This factor of production has its own characteristics, the main of which is that labor is an integral part of human life, and therefore has both a political and a social aspect.