Labor as a factor of production
The production process is possible in the presence of ideas, the manufacturer and the material from which the product will be made. It is obvious that at least two factors are necessary - man and nature. Economic science identifies four production factors: labor, land, capital and entrepreneurship.
People in the process of life make a lot of physical and mental effort. If human activity is aimed at obtaining any particular result, then labor can be considered as a factor in the production of life benefits, for which a certain stock of funds, called capital, is necessary. The concept of "land" includes water, air and other natural resources provided to humans for use.A special factor is entrepreneurship, which helps to collect various elements into a single effective complex. Nowadays, one more specific circumstance is acquiring significance - the information that people need for conscious economic activity.Social factors and science, general and legal culture, the state of morality play a significant role in the economy.
Labor as a factor of production is considered from the side of its productivity and intensity. With the implementation of scientific achievements, the nature of labor has changed. Labor as a factor of productionis a variable relative to the short-term period.
For business development it is important to foresee the calculation of indicators of the economic efficiency of any production process. Determine the factors of production efficiency can be using a structural-logical model. Always obtaining certain results is associated with a targeted expenditure of resources. Therefore, the main criterion for the feasibility of a particular activity is determined by the ratio of the result to the amount of money spent to achieve this result. Economic efficiency can be judged only by the ratio of the magnitude of the result to the magnitude of the real need for it. The main factors of production efficiency: scientific and technical, organizational, economic, socio-psychological, foreign economic.The efficiency of production activity is reflected in the ratio of three variables, such as: costs, results and demand.
Factors affecting production
Labor as a factor of production is the expedient activity of a man in order to transform nature and adapt it to meet vital needs. For this man makes mental and physical effort. The factors that determine the volume production values are various phenomena and processes on which the real increase in the production of goods depends.