The Four Factors of Production
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- čas přidán 22. 05. 2024
- By now we know about scarcity, resources, goods, and services. So how are scarce resources turned into goods and services? Via the four factors of production! These are land, labor, capital, and entrepreneurship. You may have an idea regarding what these entail, but there are some details that are very important which are often misunderstood. Let's get the scoop on these now!
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Animation by Ignacio Triana: / unraveled
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Hi sir..... one thing I want to say to you,
Iam boosting my mark on chemistry very easily because of you sir, now thermodynamics practice problem are very for me sir and thank you so much sir and iam from Tamilnadu (INDIA).
amazing video! even my econ books did not talk the factors of production in such a simple yet detailed way. thank you! keep up the good work!
the new animations and design really are spot-on
I am desperately waiting for you further vedios of history of drug
Hey, Dave. I just finished reading your book. As a fan of science, I already knew a lot of that stuff but not all of it. It's always good to learn.
Good book. Thanks!
I'm loving this series, thank you. Back-to-basics and succinct!
The distinctions between some these categories are fairly arbitrary. Human capital and labour could easily be placed together, for example. Realistically there are two kinds of people: 1. entrepreneurs, who provide the money for the land & physical capital 2. Labors who create the products and provide human capital. That seems much simpler and makes way more sense.
Thank you for presenting the material..🙏
yo i was having a hard time understanding this and this video helped so much. a huge thank you man
Vow! it was a good information about factors of production,good presentation too.Expecting more tutorial videos from Economics and Business Studies.
Thanks for the explanation
'He knows a lot about all kinds of stuff, professor Dave explains'!!!
Thankyou for the information
thank you for the information
Thanks! I needed this video for help with school work!
Saved me from my term exam tysm!
Such a simple video and idea to wrap your head around but over my short lifetime I have seen numerous government policies, projects, etc as well as group and individual projects fail as a direct results of either ignorance or blatant disregard for the requirements outlined in this video. But it isn't my job to assume the motives behind these failures.
Thanks sir for your video
Thank you for your help
Hi I'm happy in mpulungu,I really appreciate your lecturing, continue with your services
Amazing tutorial ❤️❤️ thanks al lot 💞💞
Really good editing, the animated text is really engaging
thank you very much..🙏
Thank you
Thank you🙏🙏
Excellent !
Wow thank you so much for this video 🫂
Great video 👍😊 pls make more like this...... it was really helpful.
🥉
Keep on dude... I show your vids to my niece and nephew 12 and 10. Because they are enlightening and done in a way that I cant exactly produce. Good show.
sir its really good lecture ever 😍
Important topic 👍
Tanks sir
thanks
thank you
Love it😊
thanks sir
Professor I want to ask you ,is summaries effective to study ??please answer me I have my exams very soon
Thankyou anyways
I'd put supply chain management in there as another theme. Count the parts and paths of major appliances or vehicles or the power grid and then manage repair parts. Or not
Thx
I wonder if Prof. Dave sees what we all see?... That there's a serious lack of political understanding; and how that effects our future for the worse?
That was a good video.
Thnx
Can you please give economic problem of limited factors of production
Class 👍
Hey Dave, do you have a video on Classical Physics for Calculating Energy and Working? I’m really struggling and would appreciate the help.
Yep check my classical physics series!
@@ProfessorDaveExplains Thanks you're the best!
which acategory do you put energy in ? land or physical capital ?
primary energy in land and secondary energy in physical capital ?
I think it is worth treating energy in the land separately from other aspects of land value in many ways but that's not how it is taught in most econ courses where energy value is embodied into land value.
There might be scope at degree level for separate modules on energy economics, especially if they have a sustainable development or an environmental economics slant. At intro-level though, energy is land.
Once energy is processed and embodied in a physical product, the residual energy embodied in the product is valued as part of the physical product.
So the plastics in a piece of machinery are not valued according to how much energy you might get if you try to burn them, they're intrinsically tied to the value the utility the machinery produces.
From an accounting perspective, the value of physical capital is linked to cost, depreciation, realizable value and replacement cost sort of considerations.
There is some fascinating analysis to be had from tracking the amount of accessible energy in the land obtainable with varying degrees of cost and effort over time. Basically, we've used all the easy to access stuff since the start of the industrial revolution and need to employ more energy and ingenuity to keep accessing more of it.
That raises the concept of the efficiency measure of energy returned on energy invested (EROEI), or how much energy it takes to get a unit of energy out of the ground. Resource depletion drives efficient energy extraction down, clever technology tries to offset that rising cost base.
You may be aware of the concept of entropy (Prof Dave probably has a video on it). When it comes to using energy, we're slowly turning out non-renewable resources from highly concentrated states to less highly concentrated states. Remember E=mc^2, energy isn't lost, it just gets be beyond economic reach to utilize it as it goes to less useful states.
Then the hope of renewables steps in. Another story and the post is getting rambly anyway so I'll cut it short now.
I'm no expert in anything, but I do have a maths and economics degree and spent a few years reading a couple of energy economics and energy industry blogs.
Hi Mr
What about “ Movie theater “ for Factor of production ?
not gonna lie just made the like section 1k that felt pretty cool. good video
Hi from🏴
Dear Professor Dave:
Slightly off topic but, do plan on doing a video on Anthropogenic Climate Change anytime soon❓
I will do an entire series on environmental science at some point.
@@ProfessorDaveExplains Thank you!
the intro is cool.
Hey what can we write if they ask "give a example of factors of production"?
Land, labor, capital: physical capital, human capital. Entrepreneurship (sorry I just needed to post this cus I need to see these and tell if I wanted it :) )
Terimakasih untuk vidonya sir ,Greting in Country Inodonesia University Open
I don't know if you have a Tik-Tok account but I have been seeing a lot of your videos on Tik-Tok also excellent work as usual.
Weird, other people upload? Do they credit me?
@@ProfessorDaveExplains sometimes they do sometimes they don't it's about 50-50 when I some of your content on their I always ask them to credit you for it sometimes it works sometimes it don't.
Radheradhe thank you sir
Really enjoyed this next installment in the progression, Dave. One question as relates to "Land." There are plenty of companies out there today that exist exclusively on the internet. A good example would be someone who creates websites for a living, or plans weddings and events. How would the concept of "Land" fit into these enterprises? Thanks again, and please, keep'em coming!
I think if we were to look at website making, we’d see that we still need land to create locations for the tech services to exist. With internet companies there are people who work behind the computer screens who need to be placed somewhere. With event planning websites we could consider where these events might eventually take place, a wedding for example needs a venue
Economist here, the term "land" is a bit outdated and it could very well be any space (for example, the rent you pay for your apartment iff you work from home) but not all companies need to own all the production factors. For example, when you pay the electric bill, you are contributing to pay the land used by the electric company to install the power plants, or has someone has said well above, the rent the ISP pays for the phisical space to store its servers. In the end, land is needed for the economy to work, but not necesarilly by all the small production units (aka families, companies, etc...)
I'm literally still in grade 7 but this was so easy to understand
Hey Dave , I have been watching your channel from long time I loved the calculus videos you made , really helped in my semester . but I want to really know about the black fungus (Mucormycosis) that is really been in my mind . I hope you somehow find this comment and make a video on Mucormycosis. :) this will also be a great video idea and for people it will be a great help if you tell them some suggestions on how to prevent it . have a good day.
Sorry for the delay with the mycology series, the writer had a conflict, but now he is writing again so there should be 30+ more in that series relatively soon!
Great stuff, may the algorithm bless you
Hello sir , I want case study of Black Rock, Vanguard & Berkshire Hathaway ..
I'm confused plzz help... What are the primary and secondary factors of production
A complicated puzzle, but one that is solveable
This is so much better than reading over my geography study guide! Thanks Professor Dave!
Dave? Just wanna say: I love ya Brother! All the very best to you and your family and true good friends!
Thanks for you and other scientists doing your very best in taking the time in painstaking efforts in conveying facts and information that's so beneficial and needed! Cheers to y'all! 🤗😎🙌🏻👍🏻
"Knowledge is power!" "A stitch in time saves nine!"
"An ounce of prevention is worth a pound of cure!"
3:17 Am I the only one who saw the house from Big Hero 6?
Hello Prof Dave, great video. Do you plan to address the pseudoscience of praxeology in the series?
@@LazyOtaku no
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now do public choice theory
nice1
Step 1: Collect underpants
Step 2: ?
Step 3: Profit
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Good job, Science Jesus !
2:06 memo
Businesses should be democratically run
Exactly. And that's where I have beef with the strict and seemingly religiously accepted idea on point 4. That the entrepreneur works for a profit, and that there is always a difference between that and human capital. This cannot possibly promote democratic ways of running things.
Hey so some guy named "don't sphere the truth" apparently answered all of your questions in the flat earth vid challange, have you seen it? If so, what is your opinion on it?
But to be honest I wouldn't be surprised if you don't want to watch it, I've watched only about 2 minutes of it, and there's 10 parts each an hour long, in those 2 minutes there was basically close to no information that I found to be useful or neccessary to contain, which already makes a bad impression for the video, as the rest will be the same.
Дякую)
Imagine if all people worked only as Doctors, Artist, CZcamsr etc.
Am I the only one who thinks he looks like Metatron
okay
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You forget fifth factor and that is compliance to state regulations - this can cost more than the other four factors combined.
We don't live in free market anymore - due to regulatory capture - having skills, land and capital is not enough. Today, you need lawyers and lots and lots of money just for the entry.
That's funny, I've managed to start a successful business without either of those things.
@@ProfessorDaveExplains Yes but you have a degree - that's different. I was a software engineer/architect and then changed career to chemistry since I found it's my true passion and burned out from 13+ years of active IT work - now I have to go through a second uni just to get a minimum degree so I can do the chemistry professionally (even though I already know most of what I need from years of amateur chemistry hobby). Unofrtunately, I can't even get essential reagents without having a proper training. I understand there are safety regulations, but I am not particularly rich and already spent all the money for setting up a very basic lab and doing the most basic things that just barely pay the rent. Now I am trying to gather money for the school, which is another huge investment so that I can even start...
I think of what you saying is institutional economics which actually studies the impact of regulations over the real economy and this is very much a introductional series for economics, It really, really isn't that simple, nor does It have a completelly "coherent" schools (sometimes It's quite nasty actually, just take some economical models from Harvard versus Chicago and compare them).
Also, I don't want to be mean or anything like that but your definition of free market It's quite incorrect, "free market" is defined by 3 major factors: free entry and exit of firms, pretty self explanatory; there is a extremelly high quantity of firms on the market and each of them holds a very small fraction of the market; all the goods and services offered by these firms doesn't have differentiation. Since regulations affect all firms in a market, It's not only the "little guy" that will have problems, but also the larger companies, but that of course isn't perfect, thats where institutional economics comes to play, but is a very deep concept and I don't know if Dave will cover that (if you want to answer Professor Dave, go right ahead).
PS: the example that Dave gave was of what we call a monopolistic competition market, basicly, theres little to no restrictions for someone to enter or leave the market (AKA free entry and exit of firms), each firm holds almost nothing of the market share, but there is product differentiation since It's a artisanal coffee shop after all.
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Are you sure that the cafe isn't a tax shelter run by seven proctologists?
❤️❤️❤️❤️ from 🇮🇳🇮🇳🇮🇳🇮🇳
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94
From an econ class.......
Good series so far, but when do we get to Marxian critiques of classical economics?
among us
Nurse is a labour or human capital, she has special knowledge of her work?
Sheep hair will be part of nature free gift or not hen egg or milk 🥛 of cow will be where we will put, cotton will be part of land or not or something else.
Factors of production of industry is not difficult to understand.
Hi Dave, would it be possible for you to do a debunking video on David Icke? He's one of the biggest conspiracy theorists in the world and has a lot of content. I recognise that, since his youtube channel was deleted last year, it may be a little annoying to look into his stuff, but if you can, I think it could really help a lot of vulnerable people who buy into his bullshit, thanks.
Super, 🤣🤣🤣😂😂🤣
... charlie?
That intro almost gave me a heart attack
Please get off youtube and book a appointment with a cardiologist or go to the ER immediately. Thanks.
👏🏽👏🏽👏🏽👏🏽
Anyone else feel like seizing the means of production? Jokes aside, great video!
I do
We need to completely erase this conception of production. It is incompatible with long term sustainability, and human dignity. Humans, to my sense, should not be viewed as mere resources to be capitalized on. And reducing the mission of these organizations to be the maximization of profits leads to paths that might have unintended consequences.
Production has been a property of civilization since it first existed. It describes the process of creating bread out of grain or bricks out of clay. There's no morality baked into it about the goals or worth of human beings. "We need to erase production" is like saying "we need to erase value" or "we need to erase trade."
@@dankwarmouse6248 I don't know if this was an honest mistake or if you deliberately misrepresented my point. I never wrote "We need to erase production", you are arguing against a strawman.
@@thewatcher638 So then what is your point? This "conception of production" is descriptive, not prescriptive, so saying we need to get rid of it is the same as saying we need to get rid of what production actually is.
@@dankwarmouse6248 it is prescriptive, it assumes that the profit motive is a necessary function in the process of production (see concept of 4 factors of production in the video). This assumption is questionable at best.
@@thewatcher638 I disagree. It's an observation that those who provide a service expect compensation, and that they seek to maximize this compensation. Is this any more contentious than claiming that customers, ie those receiving a service, will seek to minimize their spending?
Bartering, perhaps the most ancient of economic practices, is probably one of the clearest examples of this kind of negotiation. The baker wants as much meat as he can get from the butcher for as little bread as he can trade for it, and vice versa.
First?
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u should stick to science videos...u r good at that
I'll cover whatever material I want, thanks much.
Economics is a science
While the natural sciences are my favorite, social sciences such as economics are also important and relevant for everybody to learn about!
@@backstreetfan2887 It's true. Sociology changed my whole view of like anything related to society.