Production

All economies must produce stuff, it's their sole purpose!

Many arguments can be made about what's the best way to go about maximizing the total output, and if we should even do so, but, some concepts about Production are so fundamental that almost nobody disagrees on their validity.

Factors of Production

The factors of production are the tools with which other products/ services can be made with.

They are:

• Land - Where the work happens
• Labor - People to work
• Capital - What fuels and optimizes the work: Money, Machines, Education, Entrepreneurship, etc.

Specialization

Also known as 'The division of Labor', it allows for humans to focus on doing a narrow range of tasks, in order for them to be very effective at what they do.
Overall, Speciallization increases the total wealth generation in a society.

Check out the next post and the previous post!