Determining factor of production in a market economy. Factors of production in the economy: definition and classification

We already know the economic factors (or resources) of production: "labor", "entrepreneurship", "capital" and "land". There are also definitions when the first two factors are called the human or human factor of production, and the second two factors are called the material factor. Some authors call labor and land primary factors, and capital a secondary factor (because its elements - machine tools, machines, semi-finished products, etc. - are also created by the labor of people at the stages that precede this production).

The result of production is provided under the condition of a combination various factors production in certain proportions. However, in order to achieve the same production result possible various options combinations of factors. In theory, a conditional two-factor model is usually analyzed, reflecting the dependence of output (Q) on a combination of a certain amount of labor (L) and capital (K). By connecting the points of the same output at different combinations, we get a curve. Such a relationship is called an isoquant - a line of equal output, and can be depicted graphically:

Rice. 7.1. Isoquant map

In this scheme, labor refers to the number of employees, and capital refers to the level of technical equipment (mechanization) of labor.

The above example shows that the same volume of output (for example, points A and B) can be provided either by a high level of mechanization with a relatively small number of workers (point A), or with less technical equipment due to an increase in the number of workers (point B). By increasing both factors, we can reach more high level production, which is reflected by point C on the Q2 isoquant, located above the Q1 line.

Isoquants have the following properties:

Each isoquant corresponds to a certain volume of output, and they cannot intersect;

Isoquants have a negative slope, so that while output remains the same, a decrease in the use of one of the factors requires an increase in the use of the other factor.

Quantitatively, the degree of substitution of one factor by another can be measured by an indicator called the marginal rate of technological substitution (the Latin abbreviation MRTS). MRTS is the ratio of the change in the quantity of one of the factors to the change in the quantity of the other factor, while output remains constant. In our example:

MRTS=? TO /? L.

Isoquants are similar in shape to indifference curves. This is no coincidence. For their economic properties are very close. After all, the entrepreneur can be considered as a consumer (in this case production resources) in order to meet the production needs of the enterprise (firm). The mathematical apparatus of the analysis of isoquants is similar to the methods of analysis of indifference curves.

Isoquants can have different kind depending on the degree of interchangeability of resources. Our example shows the most typical variant of partial interchangeability of two variable resources with their mandatory simultaneous use. If resources are absolutely interchangeable in any production, then a given volume of production can be provided both by using any one resource, and by combining them. The isoquant will look like a straight line. For example, oil and gas as sources of energy are absolutely interchangeable resources (Fig. 7.2, a).

It is also possible that two resources complement each other, but do not replace each other. For example, in the field of road transport, the number of cars and the number of drivers should be the same and unchanged for a given volume of traffic. The isoquant in this case will look like right angle(Fig. 7.2, b).

Rice. 7.2. Types of isoquants

A firm that operates on two variable, partially interchangeable factors faces the problem optimal choice combinations of these resources for a given volume of output. The task is very simple - to minimize the production costs associated with the acquisition of appropriate resources. The decision obviously depends on the ratio of prices per unit of each factor (in our conditional typical example - capital and labor) and the size of the firm's budget allocated for the purchase of these factors. Knowing the prices and the budget, we can build a line of equal costs on the isoquant chart for different combinations of production factors, which is called the isocost (analogous to the familiar budget line) - see fig. 7.1. It is easy to guess that for each given volume of production, the optimal combination of resources will be at the touch point of the isocost and isoquant (point B). At this point, economic equilibrium is reached, in which the last ruble spent on the purchase of each factor gives the same increase in total output. From the point of view of rational economic behavior, this means that a relatively more expensive factor of production is replaced by a relatively cheaper one (taking into account changes in the dynamics of the size of the marginal products of each of the factors).

Under the conditions of the market economy system (which prevails in modern world), almost all factors of production are practically acquired in their respective markets. The owners of factors of production provide them at the disposal of economic entities for a fee. This payment in the market takes the form of the price of this factor of production, and its owner receives a corresponding income, which we will call factor income.

In the factor markets, in principle, the same patterns of supply and demand operate as in commodity markets. At the same time, it is necessary to take into account the specific features of the markets for factors of production.

The most common of these features for all factor markets are:

The demand for a resource is derived from the demand for products made with its use;

The marginal revenue from the sale of an additional unit of output obtained with the involvement of an additional unit of a resource must be higher marginal cost to the resource;

The change in demand for a given resource depends on the prices of substitute resources;

The elasticity of demand for a resource depends on specific gravity given resource in total costs;

The demand and supply of some resources can be influenced economic policy states.

Factor incomes from the use of various factors of production in the real economy have various forms of manifestation: wage, profit, entrepreneurial income, loan interest, dividend, rent of various kinds. Let's consider them in more detail.

Capital - as a determining factor in the production of a market economy. The term "capital" has many meanings: it can be interpreted both as a certain stock of material goods, and as something that includes not only material objects, but also non-material elements, such as human abilities, education.

Defining capital as a factor of production, economists identify capital with the means of production. A similar approach comes from the classics of political economy: A. Smith characterized capital only as an accumulated stock of things and money. D. Ricardo interpreted it as a means of production.

Stick and stone in hand primitive man seemed to him the same element of capital as machines and factories. Capital consists of durable goods created economic system for the production of other goods. These are human-created production resources (machines, buildings, computers, pipelines, railways etc.) designed to increase labor productivity. Another aspect of the category of capital is related to its monetary form.

For example, J. Robinson in his work “Capital Investments in the Modern Economy” writes that capital, when it is embodied in finances that have not yet been invested, is a sum of money. Capital is understood as money (in a short period) for which the physical elements of production are acquired. Views on capital are diverse, but they all have one thing in common: capital is associated with the ability to generate income. Capital could be defined as investment resources used in the production of goods and services and their delivery to the consumer.

V economic analysis often used along with the term "capital" and the concept of "investment", "investment resources". The term "capital" is used to refer to capital in materialized form, i.e. embodied in the means of production. Investments are capital not yet materialized, but invested in the means of production. In modern Western economics capital is treated as durable goods created by people for the production of other goods and services.

This definition of capital serves as the basis for different concepts capital used in everyday language and economic literature. Economic theory distinguishes: physical (technical) capital - a set of material means that are used in various phases of production and increase the productivity of human labor (machines, buildings, computers, etc.); financial (monetary) capital - a set of monetary resources and the monetary value of securities; legal capital - a set of rights to dispose of certain values, and these rights give their owners income without investing the corresponding labor; human capital are those investments that increase a person's physical or mental capacity. In the process of production, the various elements of physical capital behave differently.

One part functions for a long time (buildings, machines), the other is used once (raw materials, materials). The first part of capital - fixed capital - capital that participates in the production process for several production cycles and transfers its value to the created goods in parts.

Fixed capital includes three main elements: 1. fixed assets; 2. intangible assets; 3. long-term financial investments. Fixed assets - this is a part of the property of the enterprise, acting as a means of labor in the production of products, performance of work or provision of services, or used for the management needs of the enterprise.

These include: buildings; structures; working and power machines and equipment; vehicles, computers; land owned by enterprises; on-farm roads and other fixed assets. Intangible assets are a part of the enterprise's property that does not have a material form and brings income to the enterprise. These include: patents, licenses, trademarks and trademarks, intellectual property rights, goodwill of the company and other intangible assets. Long-term financial investments include: ¦ contributions to authorized capitals other enterprises, ¦ the cost of acquiring shares and bonds of other enterprises, long-term loans issued against debt obligations, the cost of property leased under the rights of financial leasing (with the right to purchase after the expiration of the lease term). The second part of the capital working capital.

This is the property of the enterprise, which acts as objects of labor and brings income to the enterprise. These include: raw materials, basic and auxiliary materials, fuel; unfinished production; future spending; finished products in stock; goods shipped to consumers; cash(at the cash desk and on the accounts of the enterprise); funds in settlements (accounts receivable). The money spent on working capital is fully returned to the entrepreneur after the sale of products.

Fixed capital costs cannot be recovered so quickly. Fixed capital, embodied in the means of labor, wears out as it is used.

Economists distinguish between physical and moral depreciation. Physical wear takes place, firstly, under the influence of the production process itself and, secondly, under the influence of the forces of nature (corrosion of metal, destruction of concrete, loss of elasticity or flexibility of plastic, etc.). The longer the operating time of fixed capital, the greater the physical depreciation. The concept of depreciation is related to physical wear and tear.

Depreciation is an economic category and expresses economic relations regarding that part of the value of the fixed capital which was transferred to goods and returned after the sale of goods in the form of money to the entrepreneur. It is accumulated in a special account called amortization fund. Obsolescence (obsolescence) is a decrease useful properties fixed capital in the eyes of users compared to what is offered in return.

Obsolescence is of two types. The first type is associated with the production of cheaper machines, equipment, Vehicle etc. The second type is associated with the production of more advanced machines. In this case, entrepreneurs also incur losses by continuing to use obsolete machinery or equipment. For capital as a factor of production, income is interest. Interest income is the return on the capital invested in the business.

This income is based on the costs of the alternative use of capital (investing money in a bank, in shares, etc.). The amount of interest income is determined by the interest rate, i.e. the price a bank or other borrower must pay to a lender for the use of money over a period of time. Those. The interest rate is the ratio of the income on the capital provided on loan to the very size of the loaned capital, expressed as a percentage. According to neo classical theory, the equilibrium rate of interest (rate of interest) is determined in the capital market by comparing the utility (marginal return MRP) of capital and the costs (abstinence, MRC expectations) of not using capital at the present time.

The demand for capital will be higher the lower the interest rate. In addition to the considered neoclassical interpretation of interest, which received the name "real interest theory" in economic science, there is another - Keynesian. In contrast to this view, he gave a different definition of interest, the essence of which is that the rate of interest is a reward for parting with money as liquidity for a certain period.

From his point of view, the rate of interest is nothing but the reciprocal of the ratio of the amount of money to what can be obtained by parting with the ability to dispose of this money for a specified period of time. Implementation of any investment projects implies a gap in time between costs and revenues.

The time value of money arises because there are alternative income opportunities; it depends on when they are expected to be received. Financial theory says that future money is always cheaper than today's money, and not just because of inflation. The money we have today can be "invested in" and generate income, and thus, if we get it in a year, we lose this opportunity. Therefore, the complexity of investment analysis lies in the need to compare two streams - costs and future income.

Since the utility of income received in the future is considered to be less than today's, interest can be earned on current income towards the future. Thus, "capital" in economic theory is defined as both a stock of material goods and a stock of intangible items. Adherents of the classical theory associate this concept with the factor of production, other economists - with its monetary form, but all theorists attribute to capital the main function - the ability to generate income.

Capital that is not materialized but invested in the means of production is understood as investment. Capital is divided into physical, financial, legal and human. Capital that has been functioning for a long time (buildings, machines) is called fixed, and used once (raw materials, materials) is called circulating. For capital, as a factor of production, income is the interest received from investing capital in a business. 1.2

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The production process is a set of activities aimed at processing the initial material resources using various factors production in order to create finished products, works or services. That is why it is necessary for any enterprise to have such components as investment attractiveness and capital, labor activity, land resources. Together they constitute the main factors of production.

Land resources

Land is a natural (natural) resource necessary for the existence of human society, which people use in their economic activities.

Today it is safe to say that land is the main factor of production of a traditional society, unique in its kind, the supply of which is limited. Considering it under the prism of geographical science, it can be noted that the earth is a territory, a place rich in natural resources and minerals. The usefulness of this factor is assessed by its ability to biologically reproduce, as well as by its suitability for agricultural operations. Apart from land resources, there are three more main factors of production, which will be discussed below.

Entrepreneurial Ability

For the successful development of any business, this is a very important factor. An entrepreneur must have a number of specific qualities and skills, as well as theoretical and practical knowledge, in order to establish a high-quality production and commercial activity.

Entrepreneurial activity is a kind of initiative and independent actions of citizens (or their associations), which are aimed at obtaining personal income (or profit). Such activities are carried out on their own behalf and at their own risk, under personal property liability, or on behalf of legal entity under his responsibility. Entrepreneurial ability is a special type of human capital that complements the main factors of production, aimed at creating goods, works or services in order to make a profit and satisfy one's own needs. Business (entrepreneurial ability) links together all the other resources of production.

Capital as the main factor of production of an industrial society

All property that is used to generate profit, in the aggregate, is capital. Investments (capital investments) are the direction of assets into production or the provision of services in order to obtain not just income, but also profit. As such, the term "capital" is no longer used as a reference to the main factor of production in an industrial society.

In modern accounting, a number of other indicators of financial analysis are used. For example, additional capital equity, retained earnings or reserves. Investments in their tangible form act as the main factors of production (fixed assets) and are used to create goods or services, increasing the economic efficiency of the enterprise.

Labor as a factor of production

The main factors of production are human resources, or rather, labor. This is a conscious activity of a person, which is aimed at meeting the needs of both society as a whole and each individual. It is thanks to such activity that a person adapts the surrounding reality, forcing the objects of nature and the objects of his activity to influence each other in such a way that this leads to the desired goal. Listing the main factors of production in the economy, it should be noted that labor is a kind of human capital (physical, professional abilities, intelligence).

The features of human activity are the following points:

• the labor force is formed, as a rule, over many years;
• labor force requires constant renewal and reproduction;
• it is important to constantly maintain work skills and the necessary physical form workers.

Also, the main factors of production are innovation and information.

Innovation activity

An introduced innovation that provides a qualitative improvement in processes or products and is in demand by the market is called innovation. An example is the introduction to the market of new goods or services with qualitatively new consumer properties, an increase in the level of efficiency of production systems. Innovations as the main factors of production in the economy are the end product of human intellectual activity, his reflections, creative process, rationalization, inventions and discoveries.

During the period of the emergence of the capitalist mode of production, as well as the diversified development of the mechanisms of market relations, science becomes an essential factor of production, while not separating from it.

Information as the main production factor of post-industrial society

Today it is one of the most important resources, which is widely used in economic processes. Information can be applied in all parts of the system of productive forces of modern society. It is also an integral element of all stages of human activity, acting simultaneously as a means, an object, and a component of living labor. Defining the main factors of production, it should be noted that information is a productive force, playing one of the main roles in the development of production in modern society. This is possible due to the multifunctionality of information flows and their rapid reorientation from one stage of the production process to another.

And although information has become a significant factor in production and development not so long ago, nevertheless, humanity has been using it since its inception, transforming the world around it, thereby changing information flows. Physical and geographical parameters are transformed when a person changes the course of rivers or drains swamps. The information contained in the earth's surface changes when houses are built or when minerals are mined. The information contained in the genotype is transformed when a new plant variety or animal breed is developed.

A necessary condition for resolving issues that arise before the subjects economic activity, is the possession of reliable and complete information. However, this cannot guarantee success. You need to be able to properly use the information received in order to accept best solutions in a particular situation. This is where knowledge comes into play. carriers of this type resource - highly qualified personnel.

Rent and wages as types of income from factors of production

In conditions modern market all economic resources are easily bought and sold, thereby bringing factor income to the owners. Income from such a factor of production as land is called rent. The rent is received by the entrepreneur in excess of the established profit on the capital and labor expended. More than favorable conditions production - for example, the land of one of the entrepreneurs is more fertile than the site of a competitor.

The factor income for labor is wages. This is a remuneration for the activity of an employee, depending on the qualifications, complexity, quality and quantity of work performed, as well as working conditions. The salary may also include various incentive payments, bonuses, compensation.

Interest and Profit as Types of Factor Income

Income from capital is a percentage, which indicates the share of remuneration for the benefit brought by it, capital. The ratio of value is determined by a common measure - money. This applies to both standing capital and working capital. The amount of remuneration is determined by the ratio of demand to supply. The higher the demand relative to the supply, the higher the percentage. The interest on capital is perfectly fair as well necessary form income.

The factor income from entrepreneurial ability is profit. This is the difference between the amount of income and the costs of production, purchase, storage, processing, transportation, marketing of goods and services. Profits can be negative. In this case, it is customary to use the word "loss". The very concept of "profit" is quite ambiguous. But in general, it is perhaps the most important indicator financial result economic activities of entrepreneurs and organizations.

Marxist theory in the study of factors of production

K. Marx, a German philosopher and economist, singled out the following factors of production: personal and material. In the first case, the person himself acts as a production factor as a carrier work force. In the second case, means of production are meant, consisting of means of labor and directly objects of labor.

Means of labor- these are various tools, machines, tools, machines with which a person can influence nature. This also includes land, roads, buildings and structures. In the process of his activity, a person creates means of labor, which, in a broader sense, should include any material conditions of work necessary for its completion. Objects of labor These are those natural matters that a person acts on in order to satisfy his needs.

According to Karl Marx, the sum of all production factors acts as a productive force, which is inextricably linked with production relations. The first characterizes the material content of the production process, and the second characterizes its historically defined form. In the process of improvement, this tandem constitutes a completely new and unique way production.

Non-Marxist judgments in the economic doctrine of the factors of production

Unlike Marx, his opponents believe that new value is created not only thanks to hired workers, but also to all the factors involved in production. For example, A. Marshall argued that capital and labor interact, receiving income from the national dividend, respectively, to the extent of marginal productivity. He believed that cooperation between labor and capital is essential, and in themselves they are doomed to failure.

It is possible to create spiritual and material wealth using resources and factors of production. These categories are extremely important in economic theory. Production resources are nothing more than a set of financial and material resources, social, spiritual and natural forces used in the process of creating services, goods, and other values. Here are the varieties economic theory divides production resources:

The first group is natural. This refers to substances and natural forces that are potentially suitable for further use in production. Among them there are "exhaustible" and "inexhaustible".

The second group is material. These are all that were created by man and in themselves are the result of production.

The third group is labor. This includes the population of working age. In this aspect, it is evaluated according to some parameters: cultural and educational, professional qualification and socio-demographic.

The fourth group is financial. The funds allocated for the organization of production are implied.

As technology moved from pre-industrial to post-industrial, so did the importance of resources. Previously, the priorities were labor and now - information and intellectual.

Three groups of resources that are inherent in almost any production are called basic - these are labor, material and natural. But the financial ones, which arose only at the "market" stage, are called derivatives.

But this is not the only classification of production resources. Other scientists propose to divide them into three groups: the first - general, the second - specific and the third - interspecific. General - these are those whose value does not depend on whether they are in a given company or not. Specific - their value outside the firm is much lower than inside it. And interspecific - mutually unique, complementary resources and their maximum value is achieved only in a particular firm and exclusively through it.

Resources and related concepts. But they also have differences. Earlier it was noted that resources are those natural, social, material forces that can only be involved in production. Factors are one of economic categories, which denotes the resources already involved in the production process itself. Thus, resources and factors of production are close concepts, but the concept of "resources of production" is broader than the concept of "factors of production". That is, the factors of production are the producing resources.

Resources and factors of production have their own classifications. The first was discussed above, but the second:

1. Land - this is the name of natural goods that are customarily used in the process of any production. They can be forest, air, and so on. Land is considered a limited resource, so it is customary to charge a fee for it, called rent.

2. Labor is the mental and physical effort used by people in the process of producing services and goods. People realize their ability to work for a separate payment, called wages.

3. Capital - it is usually spent in the production process. Therefore, the capital is provided for use also for a separate payment, which is called "interest on capital."

4. Entrepreneurship. Its main task is to bring together within the framework of capital, labor and land. And for the efforts and risks that are invested in a business, he receives a fee or, in other words, a profit.

The factors of production can actually be disposed of, owned or used by the state, firms or individuals.

Refers to production (capital) resources. It includes a set of benefits created by a person's past labor: buildings, structures, machine tools, machines, tools, etc. Stocks, bonds, money, bank deposits do not belong to this factor of production.

Having reliable information is necessary condition to solve the problems facing the economic subject. However, even complete information is not a guarantee of success. The ability to use the information received to make the best decision under the circumstances characterizes such a resource as knowledge. The carriers of this resource are qualified personnel in the field of management, sales and customer service, Maintenance goods. It is this resource that gives the greatest return in business. “What distinguishes a strong company from a weak one is, first of all, the level of qualification of its specialists and management staff, their knowledge, motivations and aspirations”

In a market economy, all of the above economic resources freely bought, sold and brought to their owners special (factorial) income:

• rent (land.);
• interest (capital);
• salary (labor);
• profit (entrepreneurial ability).

German economist and philosopher of the 19th century Karl Marx singled out the personal and material factors of production, while the person himself acts as a personal factor, as the carrier of labor, and the material factor of production means the means of production, which in turn consist of means of labor and objects of labor.

The means of labor is "... a thing or a complex of things that a person places between himself and the object of labor and which serve for him as a conductor of his influences on this object" . Means of labor, and, above all, tools of labor, include machines, machine tools, tools with which a person influences nature, as well as industrial buildings, land, canals, roads, etc. The use and creation of means of labor - characteristic labor activity person. To the means of labor in more broad sense include all the material conditions of labor, without which it cannot be performed. The general condition of labor is the land, the conditions of labor are also industrial buildings, roads, etc. The results of social knowledge of nature are embodied in the means of labor and the processes of their production application, in engineering and technology. The level of development of technology (and technology) serves as the main indicator of the degree to which society has mastered the forces of nature. "Technology reveals the active relationship of man to nature, the direct process of production of his life"

Objects of labor - a substance of nature, which a person acts in the process of labor in order to adapt it for personal or industrial consumption. An object of labor that has already undergone the impact of human labor, but intended for further processing, is called Raw. Some finished products may also enter the production process as an object of labor (for example, grapes in the wine industry, animal oil in the confectionery industry). “If we consider the whole process from the point of view of its result - the product, then both the means of labor and the object of labor both act as means of production, and labor itself as productive labor”

According to K. Marx, the totality of factors of production act as productive forces that are inextricably linked with production relations. Some characterize the material content of the process of social production, while others characterize its historically defined form. Evolving, each stage of development of the productive forces, characterized by the type of production relations, constitutes a unique mode of production.

Non-Marxist economic theorists do not agree with K. Marx's position that new value is created only by hired workers, but they believe that all factors of production take an equal part in its creation. Thus, Alfred Marshall wrote: “Capital in general and labor in general interact in the production of the national dividend and derive their income from it, respectively, in proportion to their (marginal) productivity. Their mutual dependence is the closest; capital without labor is dead; the worker, without the aid of his own or some other capital, will not live long. When labor is vigorous, capital reaps rich fruits and grows rapidly; thanks to capital and knowledge, an ordinary worker Western world fed, clothed, and even housed in many respects better than the princes of former times. Cooperation between capital and labor is as indispensable as cooperation between the spinner and the weaver; a slight priority on the side of the spinner, but this does not give him any advantage. The prosperity of each of them is closely connected with the strength and energy of the other, although each of them can gain for himself temporarily, or even permanently, at the expense of the other, a slightly larger share of the national dividend.

Notes

Sources

• Stankovskaya I. K., Strelets I. A. Economic theory for business schools: textbook. - M.: Eksmo, 2005.
• Drucker P. Efficient Management. Economic tasks and optimal solutions. M.: FAIR-Press, 1988
• Sychev N.V. Political Economy. Lecture course. - M.: IKF "Ekmos", 2002. 384 p.
• A. V. Makhotkin, N. V. Makhotkina. Social science in diagrams and tables. - M.: Eksmo, 2011.

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