The factors of production:
In economics, factors of production are resources used in the production of goods and services…
* Land or natural resource â€“ naturally-occurring goods such as soil and minerals that are used in the creation of products. The land or resource need not be on Earth (nor any other planet) as in the future land will include moons (beginning with mining Helium-3 from Luna, for example) and asteroids, and other obtainment of materials in space. The payment for the use of land owned by another is Economic rent.
* Labour â€“ human effort used in production which also includes technical and marketing expertise. The payment for labour (workforce) is a wage or a salary. Wage can be either in nominal value or in real value. Usually the salary or wage are marked as “w”.
* Capital â€“ either the prior-produced production goods (business capital, or real capital) that are physically used by businesses to produce other goods, or the funding (financial capital) that is provided by investors to businesses so as to pay the previous producers for those production goods. The return on business capital is profits, part of which may be retained and the rest paid in dividends. The return to financial capital depends on the legal and economic form it takes, where the return on equity capital is the dividends received and the return on debt capital is interest. Capital gains upon investments in equity (from stock value increases) or debt (from bond value increases) are not factor incomes as they are not payments for any additional provision of capital but come from a change in others’ opinions about the value of the existing capital and its arrangement.
- Russia 17,000,000 square kilometers
- Canada 10,000,000 square kilometers
- People’s Republic of China 9,600,000 square kilometers
- United States of America 9,600,000 square kilometers
- Brazil 8,500,000 square kilometers
- People’s Republic of China: 1,300,000,000 people
- India 1,200,000,000 people
- European Union 490,000,000 people
- United States of America 300,000,000 people
- Indonesia: 230,000,000 people
- European Union 15,000,000 million dollars
- United States of America 13,000,000 million dollars
- Japan 4,400,000 million dollars
- Germany 2,900,000 million dollars
- People’s Republic of China 2,600,000
When different policies are proposed, one question that should be asked is “Does this help shrink the gap?” Another is, “Does this help America’s power?”