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Assignment on the topic of factors of production
An essay about factors of production
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As we all know, our economy is driven by what we call globalization drivers in order to progress and serve people their needs and wants of survival. What the economy offers them starts of as resources which is one of two main problems of production. Due to the scarcity of resources we are unable to produce the correct amount of goods and services to satisfy the customer’s unlimited desires. Production of goods and services using the available resource is achievable through what is known as factors of production. Secondly, opportunity cost plays its role in the production of goods and services through factors of production. To simplify and illustrate the process of production using available resources, a PPF is produced. The economy depends on four main factors of production which are land, labor, capital and enterprise. Through the factors of production are the drivers of globalization which work together to operate the economy and produce goods and services to help people with survival and to satisfy their needs and wants. Land is where natural raw materials such as crops, oil, timber, and coal are extracted prior to the production stage. Due to the large population of both China and India, Investopedia states that these countries are known to be the top agriculture producers in the world. Since they have such a largest amount of people residing in the country, they are forced to increase the production of crops on their farmlands and manufacture food products to feed the economy. The extraction of the raw materials and natural resources can be done through the second factor of production which is labor. The labor process involves human’s effort and productivity to maintain a wellbeing workforce. Brazil’s coffee production sets ... ... middle of paper ... .... Point C on the other hand illustrates the total opposite; an increase in the usage of resources to produce more cars than refrigerators. Lastly, point B equalizes the amount of resources used to produce equal cars and refrigerators. Points X and Y which do not lay on the productivity possibility frontier illustrate two situations in the economy; X meaning the economy is underachieving and not utilizing the available resources for production whereas point Y is when the economy is overachieving which is impossible because of the scarcity of resources. In conclusion, the economic statue of every country differs from another due to the availability and the scarcity of the resources. A productivity possibility frontier clearly simplifies how the production of output of goods and services in specific countries looks like for economic benefits such as economic growth.
These economic models are immensely useful and help us to understand what is going on in the world economically speaking. These particular economic models are usually shown in graph or diagram form as they are clear representations of data. The production possibilities curve is a model used to understand how the economic problem relates to a nation’s productive capacity. The PPC (Production possibilities curve) enables economists to gather information on what level of production is possible when all resources are being used and what will occur when there is no availability or unemployment of particular resources. This particular model, PPC, is represented by a two dimensional diagram, therefore assuming that resources can be used to produce either product on the model. The PPC can clearly visualize opportunity cost between two products as the model demonstrates that to produce more of one good, e.g. vegemite, whilst using the same amount of resources, economies must produce less of the other good, e.g.
Throughout the 19th century, industrialization was a turning point in the United States that led to huge changes in society, economics and politics. The incoming growth of factories had positives and negatives effects. Two specific changes were the new government regulations and the increasing immigration. These changes were extremely important because they settled the bases of the country.
How would you feel being raised for slaughter? Not being able to move because of a large crowd in such a confined space? How would you feel being encircled by disease, illness and constant abuse? To animals, this is known as a factory farm.
While some might argue that industrialization had primarily negative consequences for society because of separated family life, it was actually a positive thing for society. Industrialization’s positive effects were more jobs, child labor laws and faster production. “Separated family life is when parents are gone the whole time at work and leaves their own child alone in the house” (Document 2). The overall question is asking us if the industrialization has a greater positive or negative effect on society. I think that the documents has greater positive because every page on these document were a lot of positives and the negatives were less.
Efficiency is concerned with the optimal production and allocation of resources given existing factors of production while equity is concerned with how resources are distributed throughout society (Pettinger, 2010). The equity-efficiency trade-off is an economic situation in which there is a perceived tradeoff between the equity and efficiency of a given economy. This tradeoff is commonly viewed within the context of the production possibility frontier, where any additional gains in production efficiency must be offset by a reduction in the economy 's equity. Within this equity and efficiency tradeoff, equity refers to the economy 's financial capital, while efficiency refers to the future efficiency in the production of goods and services. This theory asserts that, in order for a nation to
The 1800’s, when people were moving from the countryside to the city. Now, families were in search of new jobs, but machines created a new problem because they were replacing people’s jobs. Owners of businesses and lands noticed the issue and realized that families needed more income in the household, so they were going to need every member in the family to work, including the young ones. Children were taken advantage of because they didn't have much power; therefore, we think industrial work was perilous for working-class children due to the lack of attention that was given towards the safety of the children. Also, the fact that children could die under the conditions they were put under, was not taken into consideration.
The country of Brazil is comprised of 159 million people (1997). There are estimated to be around 150,000 indigenous people that live in the Amazon jungle. One third of the population works in agriculture and tends to have lower incomes and worse living conditions than the rest of the population. Mining is also a large industry and Brazil is the leading producer of iron ore. Many of these colonies are run by foreign companies who employ both workers from their own countries and native people. The unemployment rate runs about 7.5% and the literacy rate runs about 70%. However, it is a known fact that many of these numbers are made up by the Brazilian government. The real literacy rate runs around 30-50% and the unemployment rate is certainly higher.
...an overabundance of information all applicable to the topic. My feeling was that such an overwhelming load of facts and systems directed me away from the most important facts of the chapter. Its imperative that the student understands the small scale relationship to economic development. Therefore my attempt was to highlight the main topics of the chapter and relate them to the reader to provoke intrest and thought towards many of these important life changing situations that occur everyday. If one can see past all the theories primarily and see the cause and effects behind them, they’re appreciation for the ideas stated in the theories.
Productivity is a measure of how efficiently goods and services are produced. Labour Productivity Growth is an economic indicator of a country's prosperity. Over the long-term productivity is the single most important determinant of a country's per capita income. Countries with high productivity are those that are innovative and able to adapt to the constant fluctuations of global economy. Such countries have a higher standard of living.
The example used above (which demonstrates increasing opportunity costs, with a curve concave to the origin) is the most common form of PPF. It represents a disparity, in the factor intensities and technologies of the two production sectors. That is, as an economy specializes more and more into one product (such as moving from point B to point D), the opportunity cost of producing that product increases, because we are using more and more resources that are less efficient in producing it. With increasing production of butter, workers from the gun industry will move to it. At first, the least qualified (or most general) gun workers will be transferred into making more butter, and moving these workers has little impact on the opportunity cost of increasing butter production: the loss in gun production will be small. However, the cost of producing successive units of butter will increase as resources that are more and more specialized in gun production are moved into the butter
Every year there is a ‘league table‘ published showing the level of economic growth achieved by each country. The comparison is made using each countries Gross Domestic Product, or GDP. An important factor to look at is the difference between actual and potential economic growth. Actual economic growth increases in real GDP. This increase can occur as result of using previously unemployed resources, or reallocating resources into more productive areas or improving existing resources. Whereas potential economic growth is the productive capacity of the economy. For example, it can be shown by the predicted ability of the country to produce goods and services. This changes when there is an increase in the quantity or quality of the resources. All countries have different ways of achieving this with the resources they have available to them. For this reason it party answers the question of why some countries are richer than others. It is widely thought that the productive capacity of an economy will increase each year largely due to improvements in education and technology. This will obviously differ from country to country. For example, in the UK the quality of fertilizer could be improved, hence forth increase the years fruit and vegetable output.
A production Function in general, without specifying what kind, is related to the output of a production process which starts which starts with the factors of production. The production functions are an integral part for explaining marginal products as well as allocative efficiency. There are different classifications for production functions, and what constitutes them, determined by the type of production. This article of the WIKI aims to focus on the Substitional production function, explaining what it is and means, as well as the limitational, doing the same. (1)
A major area of concern among economists is opportunity costs. Opportunity costs are the products that are given up for another product. Because we have a limited amount of resources, we must find the most efficient way to use them. Production possibilities are the alternative combinations of all final goods and services that can be produced in a given time period with all available resources and technology. The main objective of economists is to maintain maximum output in production.
How is the important of food production? That agriculture is one of the most essential means of producing food is realized easily when we think of the types of things that we eat. The rice or wheat that we eat comes from the land. Even potatoes and other roots or vegetables and even leaves such as tea, as well as the fruits that men eat are the products of the soil that covers the earth. In fact, everything that we eat, except meat, fish and other kinds of flesh comes from the land, and what grows on the land is part of agriculture. Even the sugar, oil, coffee and other beverages that we use are products of plants that grow on land. In the same way, many of the medicines that we use is made of plants that grow in various parts of the
When comes to Economic aspect, coffee is the second most traded product in the world after petroleum. As the country’s economy is dependent on agriculture, which accounts for about 45 percent of the GDP, 90 percent of exports and 80 percent of total employment, coffee is one of the most important commodities to the Ethiopian economy. It has always been the country’s most important cash crop and largest export commodity. (Zelalem Tesera p