Resources and factors of production.

Creation of spiritual and material goods is possible, using resources and factors of production. These categories are extremely important in economic theory. The resources of production are nothing more than a combination of financial and material resources, social, spiritual and natural forces used in the process of creating services, goods, and other values. Here's what kind of economic theory divides the resources of production:

The first group is natural. These are substances and natural forces that are potentially suitable for further use in production. Among them there are "exhaustible" and "inexhaustible".

The second group is material. These are all the means of production that were created by man and in themselves are the result of production.

The third group is labor. This includes a population that is in working age. In this aspect, he is assessed according to some parameters: cultural, educational, vocational qualification and socio-demographic.

The fourth group is financial. Implied funds allocated for the organization of production.

As technology moved from pre-industrial to post-industrial, the importance of resources also changed. Previously, labor and natural resources were the priority , and now - information and intellectual.

Three groups of resources that are inherent in almost any production are called basic - this is labor, material and natural. But the financial ones that emerged only at the "market" stage are called derivatives.

But this is not one classification of production resources. Other scientists suggest to divide them into three groups: the first - general, the second - the specific and the third - the interspecific. General - these are those whose value does not depend on whether they are in a given firm or not. Specific - their value outside the firm is much lower than inside it. And interspecific - mutually unique, complementary resources and their maximum value is achieved only in a particular firm and exclusively through it.

Resources and factors of production are close concepts. But there are differences in them. Earlier it was noted that resources are those natural, social, material forces that can only be involved in production. And the factors of modern production - one of the economic categories, which refers to the resources already involved in the very process of production. Thus, resources and factors of production are concepts close, but the notion of "production resources" is broader than the concept of "factors of production." That is, production factors are producing resources.

Resources and factors of production have their own classifications. The first was considered above, but the second:

1. Earth - the so-called natural benefits, which are used in the process of any production. They can be forest, air, minerals and so on. Land is considered a limited resource, so it is customary for it to charge a fee, called rent.

2. Work is a mental and physical effort used by people in the production of services and goods. People realize their ability to work for a fee, called wages.

3. Capital - it is usually spent in the production process. Therefore, capital is provided for use also for a separate fee, which is called "interest for capital".

4. Entrepreneurship. Its main task is to bring together capital, labor and land in the production process . And for the efforts and risk that are invested in the business, he receives a fee or in another way - profit.

Factors of production can really be disposed of, owned or used by the state, firms or individuals.