Factors of production
The utilised amounts of the various inputs determine the quantity of output according to the relationship called the production function.
Materials and energy are considered secondary factors in classical economics because they are obtained from land, labour, and capital.
[5] The number and definition of factors vary, depending on theoretical purpose, empirical emphasis, or school of economics.
Physiocracy (from the Greek for "government of nature") is an economic theory developed by a group of 18th century Enlightenment French economists who believed that the wealth of nations was derived solely from the value of "land agriculture" or "land development" and that agricultural products should be highly priced.
Marx considered the "elementary factors of the labor-process" or "productive forces" to be: The "subject of labor" refers to natural resources and raw materials, including land.
They include factory buildings, infrastructure, and other human-made objects that facilitate labor's production of goods and services.
The hiring of labor power only results in the production of goods or services ("use-values") when organized and regulated (often by the "management").
In addition to the neoclassical focus on efficient allocation, ecological economics emphasizes sustainability of scale and just distribution.
Ecological economics also differ from neoclassical theories in its definitions of factors of production, replacing them with the following:[15][16] Integral to ecological economics is the following notion: at the maximum rates of sustainable matter and energy uptake, the only way to increase productivity would be through an increase in design intelligence.
In a planned economy, central planners decide how land, labor, and capital should be used to provide for maximum benefit for all citizens.
The sociologist C. Wright Mills refers to "new entrepreneurs" who work within and between corporate and government bureaucracies in new and different ways.
In the book Accounting of Ideas, "intequity", a neologism, is abstracted from equity to add a newly researched production factor of the capitalist system.
[12] See also: Natural resource economics Reiner Kümmel worked on the evaluation of energy, or more precisely exergy, as a production factor.
He defined cultural inheritance as the knowledge, techniques, and processes that have accrued to us incrementally from the origins of civilization (i.e., progress).
He claimed that one of the factors resulting in a misdirection of thought in terms of the nature and function of money was economists' near-obsession about values and their relation to prices and incomes.
Peter Kropotkin argued for the common ownership of all intellectual and useful property due to the collective work that went into creating it.
