Factors of production definition economics

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You will notice that I did not include money among the factors of production. However, in the current political climate, we can expect that money will come to be a factor of production. It is just possible that it would not be possible to avoid increasing the volume of money in circulation under a liberal regime or as in a socialist society, under a planned economy under a central planner. Since money is just one form of value, it follows that other types of value will have to be defined. T have the old values of property, labour and money being exactly the same, and we need to define the value of various forms of value. In the end, we will have the different types of value that are defined in the dictionary and the dictionary will be the basic source of our definitions. The dictionary will be the basis upon which we can define factors of production or factors of production. T be the entire definition but it will be important enough to the economy for us to consider not including it, though it cannot be excluded. T mentioned any political or social factors. T just ignore them since they could have big effects on the economy. For example, if there is a revolution one day, then the economy will have to adjust to new methods of production, new values of money and other factors of production. We are going to decide during this transition, which factors of production we consider to be most important to the economy. We will also decide if we will introduce a planned system or a free market system. Ll agree which would be more appropriate for the economy and which would be more beneficial to business interests. The free market has a few advantages: It provides for a great deal of flexibility for those who are inclined. It is also the only system that is consistent and works for everyone. When you introduce a planned system, it becomes a system where there is a great deal of central planning. We all know that has often led to disaster. T mentioned some of the factors of production, such as energy. Of course, energy and the factors of production are the most important economic forces and are also the ones which provide the greatest value and the most employment. Now that you know a little more about it, I think you will agree that a planned economy is more advantageous to all the participants in the economy, the businesses and the government.

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