Chapter 2: Production Relationships

Land, labor, capital, and management

Indestructible, immobile, permanent, and limited in supply

Labor refers to the efforts of human beings, including hired labor and family labor, in providing services for production.

<p>Labor is the services hired, not the laborer themselves.</p> Signup and view all the answers

<p>Labor is considered a flow resource because it refers to the services provided by workers and not the workers themselves.</p> Signup and view all the answers

<p>Capital represents wealth used in producing further wealth, while money itself is not a productive resource and only becomes productive when used to buy physical items of capital.</p> Signup and view all the answers

<p>Fixed factors of production cannot be varied in the short run, while variable factors can be varied within a short period.</p> Signup and view all the answers

<p>A production function shows the technical relationship between factor inputs and output, describing the output expected from different input combinations.</p> Signup and view all the answers

<p>Production functions can be expressed in tabular, graphic, and algebraic forms.</p> Signup and view all the answers

<p>For example, a table showing the relationship between fertilizer and grain yield can represent a tabular form of a production function.</p> Signup and view all the answers