Production that: known
• Access to benefit and increase what's already there.
• interaction result in a material gain.
• every human performance insatiable human need.
• the process of its inputs and outputs and resources
• Steps are held for raw materials to get a product benefit the individual.
• essential function is working on the development and prosperity of the people and development of nations.
Meaning production in modern economic thought: -
Enter Adam Smith in the sense of production of every human activity leads to the creation of material funds, whether these funds material agricultural products or industrial and then enter Jean Pant Sai services in the sense of production and became a production means every human activity leads to the creation of benefits or to increase them with a view to satisfying human need.
Consequently, production is divided into two parts, namely: -
1. material production: - material for the production of more than one image, for example pictures of physical production in addition to agricultural production every action leads to change the shape of the human material such as furniture made of wood Ooualemlabs of cotton or leather shoes or cars or airplanes
2. non-material production: - meaning production on all material production is not limited, which is in goods, whether consumer or productivity, because the satisfaction of human needs not be met through the use of these goods, but there are human needs can not be satisfied only through services such as the need for treatment and the need to education and the need for goods These needs are satisfy them through the performance of some of the services a doctor's service and the teacher and service trade.
The importance of production
The value of production in the following
1. Production means to satisfy human needs
That man feels many needs such as the need for food and the need to drink and the need to clothe and the need for housing and the need for treatment and the need for education etc ..
It is also notable that the man can not find a direct satisfy these needs of nature and without intervention, but it needs to do human effort leads to find goods and services with a view to satisfy human needs and called on this production and the importance of production appear as a necessary means to satisfy human needs
2. production source entry
Login earned by individuals, whatever their jobs in the community primary source is the production adherents production elements who have the production process have access to this production, each according to his contribution in the production process where the owner of the natural resource element gets the profit is determined either according to the device the prices in the capitalist system and either in accordance with administrative decisions in the socialist system as well as the employer gets the wage component is determined also by either the prices in a capitalist system and either in accordance with administrative decisions in the socialist system
Production elements
These elements are summarized in the following: -
1. Work
2. Land and Natural Resources
3. Capital
4. regulation
1. Work: -iqsd to work as a production it physical or mental effort elements being done by individuals to produce goods and services and the work item measure through the number of hours worked and worker gets paid for his work, which is determined in hours
2. Natural Resources: - earth contain many natural resources such as arable land air water oil minerals etc .. All of these natural resources are used in the production process for the production of various goods and services in conjunction with other factors of production
3. Capital: - intended capital in this regard funds previously produced and used in the production process and capital in this sense is divided into two groups, namely: -
- Fixed capital, which is the capital, which is used in the production process many times without hardly changing such as machinery, buildings and many roads, bridges, schools and universities
- Working capital is the capital, which can only be used once in the production process and then enters in the composition of item, such as raw materials such as cotton and fuel.
4. orderly regulation: - intended organizer person or group of persons who compose the elements of production in order to produce a range of goods or services so often bear the risks of this process. Usually the regulator is the owner of the project and therefore who bears the risk of the project, which also who gets the profit made by the project in case of success of the project.
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