1.2 Factors of Production
Completion requirements
Ideally, the production of goods and services increases over time. This increase is called economic growth. When the economy grows quickly enough, our standard of living rises. A standard of living
is determined by how easily people are able to satisfy their wants. It is the degree of wealth and material comfort available. It also measures how easily people can access meaningful employment, proper medical care, and quality education.
The strength of an economy is related directly to the standard of living.
A market economy improves when resources become more plentiful. More goods and services can be produced with more resources. More people work, and the standard of living rises.
Historically, the factors of production are those resources used to create products and/or provide services.
Many economists believe that entrepreneurship, ecosystems, and technology should be included as factors of production. In this course, we will focus on the historical factors.
The strength of an economy is related directly to the standard of living.
A market economy improves when resources become more plentiful. More goods and services can be produced with more resources. More people work, and the standard of living rises.
Historically, the factors of production are those resources used to create products and/or provide services.
Land
Labour
Capital
Many economists believe that entrepreneurship, ecosystems, and technology should be included as factors of production. In this course, we will focus on the historical factors.