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Factors of productionPage - I'Factors of production' is an important concept while studying Economics. When we say 'Factors of production', it is normally meant as factors which enables the production. The different factors of production has been classified as: Men, Material, Capital and Entrepreneurship.The system of grouping factors of production is made very simple. Here, let us analyse. Workers work on material, capital purchases both workers and materials and Entrpreneur supervises other factors. This is so simple that, the original methodological system of classification, has vanished from common users of Economics. I haven't seen any student coming and asking, "What would have been the factor, now named money, in olden times when it was only barter system?" Though the question may be looked upon as a silly one, It can also be seen as a great eye opening into original apprehension. It is not that, already it has been grouped and so is it and nothing more to argue. It is certain that Grouping can be done based on various criteria and all the groupings may be correct and exact. But the Grouping, which has practical relevance and which tells you the fact much simpler should be taken at public. |
I have segregated this article into 2 pages and have written the first page for students of Economics, the grouping pattern of Factors of Production and in the next page, my views on the present grouping.
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