Word info

factor of production

Noun

Meaning

factor of production (plural factors of production)

(economics) A resource used to produce goods and services, such as labor, land, or capital.

Source: en.wiktionary.org

Examples

The Marxian school goes further, seeing labor (in general, including entrepreneurship) as the primary factor of production, since it is required to produce capital goods and to utilize the gifts of nature. Source: Internet

If an industry uses an appreciable amount of that factor of production, an increase in the output of that industry will exhibit increasing costs. Source: Internet

If an industry uses little of a factor of production, a small increase in the output of that industry will not bid the price of that factor up. Source: Internet

In contrast, many economists today consider " human capital " (skills and education) as the fourth factor of production, with entrepreneurship as a form of human capital. Source: Internet

Instead of importing a factor of production, a country can import goods that make intensive use of that factor of production and thus embody it. Source: Internet

Money, however, was not considered to be a factor of production in the sense of capital stock since it is not used to directly produce any good. Source: Internet

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