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Factors of Production: Labour, Capital and Management

  • W. H. Parker

Abstract

Traditionally the factors of production were considered to be land, capital and labour. Land was an obvious factor in the age of agriculture, but its significance is much less in an industrial economy. The land on which a factory is erected plays a wholly passive role, and in the USSR until recently it was totally ignored as a factor, since not even rent was paid for it. Modern economists sometimes substitute ‘natural resources’ for ‘land’, which widens the concept considerably. Land is fixed and cannot be imported or exported, but natural resources can be brought in from other countries; land can be used as it is, resources have to be developed. It is more common today to confine attention to capital and labour, although management is often regarded as a third factor. Education and technology also qualify in some classifications, but education may be regarded as an aspect of labour, and technology as an aspect of capital. Education improves the quality of the labour force and technology increases the productivity of capital.

Keywords

Labour Force Trade Union Soviet Economy Soviet System College Diploma 
These keywords were added by machine and not by the authors. This process is experimental and the keywords may be updated as the learning algorithm improves.

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Notes

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Copyright information

© W. H. Parker 1972

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  • W. H. Parker

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