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Money is not a factor of production in economics because it is used as a way to facilitate trade, but does not actually produce goods or services on its own. Money is not considered a factor of production because it cannot be made into a good or service. It can only purchase them.
Money facilitates trade, but it is not in itself a productive resource. A factor of production is an input to the production process, such as capital. Money is not capital as economists define capital, because it is not a productive resource.
Keely Schneider
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∙ 11y agoNo it should not be a factor because,, it is not used directly in the production process
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Why money is not consider as a factor of a production?
Money is not a factor of production in economics because it is used as a way to facilitate trade, but does not actually produce goods or services on its own. Money is not considered a factor of production because it cannot be made into a good or service. It can only purchase them. Money facilitates trade, but it is not in itself a productive resource. A factor of production is an input to the production process, such as capital. Money is not capital as economists define capital, because it is not a productive resource.
What type of resource is not an economic factor of production?
Money, political resources, and infrastructure are not considered economic factors of production. Money is considered to be a factor used in trade, mostly. Money is used to trade or sell or buy something and for production to move as well. It can be a huge factor that contribute to production but it mostly envelopes the trade industry.
Is money a resource or factors of production?
Money is considered to be a factor of production figuring the more a company makes the more money they will earn.
What is considered the passive factor in production?
land
Is sunlight considered a factor of production?
An economist considers the Sun a factor of production or a variable of land. The sun is considered as a Oil and mineral deposits, or water to an eonomist.
Why money is not consider as a factor of a production?
Money is not a factor of production in economics because it is used as a way to facilitate trade, but does not actually produce goods or services on its own. Money is not considered a factor of production because it cannot be made into a good or service. It can only purchase them. Money facilitates trade, but it is not in itself a productive resource. A factor of production is an input to the production process, such as capital. Money is not capital as economists define capital, because it is not a productive resource.
What type of resource is not an economic factor of production?
Money, political resources, and infrastructure are not considered economic factors of production. Money is considered to be a factor used in trade, mostly. Money is used to trade or sell or buy something and for production to move as well. It can be a huge factor that contribute to production but it mostly envelopes the trade industry.
Is money a resource or factors of production?
Money is considered to be a factor of production figuring the more a company makes the more money they will earn.
Why is money a factor of production?
money acts as a factor of production. it is because the other factors of production are indirectly dependent on money. more the money paid to any factor of production more it will work. hence money encourages other factors of production to work more.
What is considered the passive factor in production?
land
What is considered the passive factor production?
land
Is sunlight considered a factor of production?
An economist considers the Sun a factor of production or a variable of land. The sun is considered as a Oil and mineral deposits, or water to an eonomist.
Why are entrepreneurs considered a factor of production?
Because they are enterprising!
What is the best factor of production?
The best factor of production is money - since it can buy anything - including human resources. By Dr.R.Senapathi.
What is an important factor considered by sales forecasters?
production employee requirements
Characteristics of capital as factor of production?
capital is a money to start a business
A company's fleet of trucks represent which kind of factor of production?
It is considered capital.
