Factors of production: Difference between revisions
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Three factors of production -- [[land]], [[labour]], and [[capital]] -- have been identified in classical economic theory. Modern theory still makes extensive use of this concept although many textbooks fail to include it in the index or table of contents. | Three factors of production -- [[land]], [[labour]], and [[capital]] -- have been identified in classical economic theory. Modern theory still makes extensive use of this concept although many textbooks fail to include it in the index or table of contents. | ||
According to Paul A. Samuelson the three factors are further categorised into primary factors (''land'' and ''labour'') and the derived or produced factor, ''capital'': ''A primary factor is... produced or given outside of the economy... rather than produced by the economic system''.<ref>Samuelson and Nordhaus ''Econoics'', pp.50 (1989).</ref> | According to Paul A. Samuelson the three factors are further categorised into ''primary factors'' (''land'' and ''labour'') and the derived or produced factor, ''capital'': ''A primary factor is... produced or given outside of the economy... rather than produced by the economic system''.<ref>Samuelson and Nordhaus ''Econoics'', pp.50 (1989).</ref> | ||
Revision as of 07:32, 18 June 2007
Three factors of production -- land, labour, and capital -- have been identified in classical economic theory. Modern theory still makes extensive use of this concept although many textbooks fail to include it in the index or table of contents.
According to Paul A. Samuelson the three factors are further categorised into primary factors (land and labour) and the derived or produced factor, capital: A primary factor is... produced or given outside of the economy... rather than produced by the economic system.[1]
- ↑ Samuelson and Nordhaus Econoics, pp.50 (1989).