FACTORS OF PRODUCTION
FACTORS OF PRODUCTION
One. Land - refers to all natural resources, such as minerals, forests, and water. Significance: provided raw materials, space, and resources for all economics activities.
Two. Labor - refers to the effort and skills of people who work to produce goods and services (human capital labor).
Significance: offers human skills and effort, driving productivity and adaptability
Three. Capital - refers to the tools, machinery and other physical assets used to produce goods and services.
Significance: enhances efficiency with tools and infrastructure, fostering technological progress (interest).
Four. Entrepreneurship - combine all the factors of production. They identify opportunities organize resources and bring new products or services to the market.
Significance: for economic growth, innovation, creating jobs, taking strategic risk, all of which contribute to sustainable development and improve living.
MAJOR DIVISIONS OF ECONOMIC
MAJOR DIVISIONS OF ECONOMIC
One. Microeconomics - Focuses on the behavior of individual economic actors, such as household and firms. Always satisfy the needs and wants of the individuals.
Two. Macroeconomics - Examines the economy as a whole, on a national or global scale. Examines the overall level of nation's output, employment and prices.