You are on page 1of 3


set of natural resources used in the production process. Includes land itself, water, air, plants,
animals, minerals and energy sources.
Labour is part of the production is made by man. Actually encompasses many notions, however
the main ones are:
Human effort in the search for a productive purpose.
The effort deserves remuneration. (very vague notion)
The use of human intelligence applied to activities.
Through the progress and diversification, human labor is divided, generating specialization. Today,
the most complex and most economic valuation works are those from intellectual complexity or
The capital is the result of the accumulation of the human production and that from the point of
view of the capitalism is a fundamental factor of the economic growth. Across the capital it is
possible to obtain goods and productive services that will serve to generate the social wealth of
the persons and to raise the quality of life.
The capital helps to transform the natural and intellectual resources into goods of utility for the
The capital notion includes not only what we know as a money, can include concepts like goods,
teams, knowledge, plants, buildings, gifts, skills etc... Namely all the inputs that have accumulated
across the time that they can generate some type of valuation and expansion.

what is meant by the production process?
it is a system of actions that are interrelated of dynamic form and that are faced to the
transformation of certain elements. This way, the entry elements (known like factors) happen to
be elements of exit (products), after a process in which its value increases.
what types of product does the production process create?
I can mention the main ones: the final products, which are offered on the markets where the
organization interacts, and the intermediate, usable products as factors in other one or other
actions that compose the same production process.
What is meant by factors of production?
The productive factors are the set of resources that are used to produce the goods and services
destined to satisfy needs

Natural resources.
It is, therefore, a factor that includes numerous elements as the proper terrestrial surface
(cultivable, urbanizable, marine, etc.) and also the goods that are obtained of the same one like
the food (cereals, fruits, milk...), the raw material (wood, textile fibres, derivatives of the oil as the
plastic ones) and the energy (diesel, wind, the sun, biofuels).
It is the contribution to the productive process of the human being. This intervention is essential in
the making of any good or service. The tasks associated with the factor work have evolved very
much over the course of time, especially as, in the most developed societies, the use of the
machines is generalized.
The capital or goods of investment are the goods property of the companies that do not satisfy
straight the needs of the consumers but they serve to produce other goods or services. We can
meet two types of capital principally:
Physical capital.
Financial capital
what is meant by sectors of production?
Primary sector
It comprises the economic activities related to the transformation of the natural resources in not
elaborated primary products, which will be used like raw material in the industrial production.
The main activities of the primary sector are the agriculture, the mining, the cattle, the fishing, the
hunting, the forestry, the beekeeping and the aquaculture.

It is the set of activities that suppose the transformation of food, goods and raw material by
means of more and more automated different productive processes.
They are part of this sector the iron and steel industry, the mechanical industries, the chemistry,
the textile, the production of consumer goods, the computer hardware, etc. The construction,
although it is considered to be a secondary sector, is taken into account usually apart so, its
importance awards proper entity.
It is those activities that do not produce cash commodities, but that are essential for the correct
functioning of the economy.
It is constituted by all those activities dedicated to giving support services to the productive
process, to the care of the persons, of the hearths, and everything what has to do with the culture
of the population.
Also there includes everything related to transport, commerce, communications, finance, tourism,
hotel trade, free time, culture, spectacles and the so called public services, independently that are
provided for the State or the private initiative (education, health, attention to the dependence).