Historical Schools and Factors
In the interpretation of the currently dominant view of classical economic theory developed by neoclassical economists, the term "factors" did not exist until after the classical period and is not to be found in any of the literature of that time.
Differences are most stark when it comes to deciding which factor is the most important. For example, in the Austrian view—often shared by neoclassical and other "free market" economists—the primary factor of production is the time of the entrepreneur, which, when combined with other factors, determines the amount of output of a particular good or service. However, other authors argue that "entrepreneurship" is nothing but a specific kind of labor or human capital and should not be treated separately. The Marxian school goes further, seeing labor (in general, including entrepreneurship) as the primary factor of production, since it is required to produce capital goods and to utilize the gifts of nature. But this debate is more about basic economic theory (the role of the factors in the economy) than it is about the definition of the factors of production.
Read more about this topic: Factors Of Production
Famous quotes containing the words historical, schools and/or factors:
“We can imagine a society in which no one could survive as a social being because it does not correspond to biologically determined perceptions and human social needs. For historical reasons, existing societies might have such properties, leading to various forms of pathology.”
—Noam Chomsky (b. 1928)
“We’re for statehood. We want statehood because statehood means the protection of our farms and our fences; and it means schools for our children; and it means progress for the future.”
—Willis Goldbeck (1900–1979)
“I always knew I wanted to be somebody. I think that’s where it begins. People decide, “I want to be somebody. I want to make a contribution. I want to leave my mark here.” Then different factors contribute to how you will do that.”
—Faith Ringgold (b. 1934)