Essay --

In this essay I will be talking about the 4 factors of production and the production porta frontier and wherefore some economies operate indoors the production possibility frontier and factors that execute the Production Possibility Frontier to shift outwards making the sparing more(prenominal) efficient.The four factors of production are land, savvy, corking and enterprise. Land is the essential resources available for production. Some nations are lucky enough to consume the resources within their country and dont have to import resources, for example embrocate or copper. LandNothing is free, except the air we breathe. The rest are scarce, because there are non enough natural resources in the orbit to satisfy the demands of consumers and producers. That is the economic problem, peoples wants are never-ending unless the resources are insufficient to fulfil their demands. Air is classified as a free good since consumption by one person does non reduce the air availa ble for others - a free good does not have an opportunity cost. Labour The human input into the production process. In the UK, of about 59 trillion inhabitants only approximately 35 million are of working age (16-64 years for men and 16-59 for women), and of those about 28 million have paid jobs.- (Tutor2u, N.D) Owners of businesses prefer their workers to be motivated, meaning that they have the desire to work effectively and in reward wither gain ground from extra pay or fringe benefits. The more produced by the labour force, the higher the Gross Domestic Product.Capital Capital has several meanings - including the finance raised to operate a business. But normally the term capital means investment in goods that can produce other goods in the future. (Tutor2u, N.D) Capital refers t... ...ficient. In conclusion, as a country works towards displacement the production possibility frontier outwards, the economy benefits by the fact that more jobs are being created as more product s are being supplied. With the profit of technology countries can exploit their resources more efficiently which causes more production, with more production come more sales and with more sales or exports there might eventually be an increase in economic growth. However, with more production come more external costs equal pollution. Identifying and estimating a monetary value for air pollution can be very difficult to do but is important for economists concerned with the relate of economic activity on our environment. Besides the externalities, shifting the production possibility frontier outwards will create more jobs in the economy and that is a very good thing indeed.