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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.
Wiki User
∙ 8y ago
Wiki User
∙ 11y agoMoney is not considered a factor of production because,labor,capital, land and management are strong factor of production.money just enhances the factor of production.
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What do economists consider factor of production?
enumirate the different factor of production?
Why money is not considered as factor as 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.
Characteristics of capital as factor of production?
capital is a money to start a business
What do economists consider factor of production?
enumirate the different factor of production?
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.
Why money is not considered as factor as 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 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 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.
Characteristics of capital as factor of production?
capital is a money to start a business
What did Karl Marx mean by the 'means of production'?
Karl Marx used the term 'means of production' to refer to the physical and non-human resources used to produce goods and services, such as land, factories, and machinery. In Marx's theory of capitalism, ownership of the means of production by the capitalist class leads to exploitation of the working class. He argued for collective ownership of the means of production as a way to achieve a more equitable society.
What 5 things must you consider before staging a musical?
Money, space, cast, production staff, and audience
What was the Production Budget for Chill Factor?
The Production Budget for Chill Factor was $34,000,000.
Why may labor as a mobile factor of production be unwilling to move?
why the labour as a mobile factor of production may be unwilling to move
What is factor price?
the cost of factor of production
