The classical or primary factors of production are land, labour, and capital. Simply put, inputs of production (or factors of production) are the commodities or services used to produce a good or service. The secondary factors of production are inputs such as material and energy because they are what are acquired from land, labour, or capital.

What are the inputs and outputs of production?

Inputs and outputs are dependent on the other and the relationship between the two is called the production function. The classical or primary factors of production are land, labour, and capital. Simply put, inputs of production (or factors of production) are the commodities or services used to produce a good or service.

How does food production affect the food shortage?

Food production is a crucial determinant of food supply or food shortage. The potential of producing food varies among countries but it largely depends on natural factors, political factors and cultural factors. Different countries are affected by these factors different but they can all combine to cause global food shortage.

What are the environmental factors that affect food production?

Soil is a major environmental factor that affects food production. The fertility and structure of soil affects food production. Although these factors are not considered by most people because they are modified by rainfall or temperature, they affect food production in various ways.

The primary factors facilitate production but neither becomes part of the product (as with raw materials) nor becomes significantly transformed by the production process (as with fuel used to power machinery). Land includes not only the site of production but also natural resources above or below the soil.

How are natural resources used in the production of products?

Land or natural resource — naturally occurring goods like water, air, soil, minerals, flora, fauna and climate that are used in the creation of products. The payment given to a landowner is rent, loyalties, commission and goodwill. Labor — human effort used in production which also includes technical and marketing expertise.

What kind of goods are used in production?

Capital stock — human-made goods which are used in the production of other goods. These include machinery, tools, and buildings. They are of two types, fixed and working. Fixed are one time investments like machines, tools and working consists of liquid cash or money in hand and raw material.

What does labor mean in relation to production?

Labor can also be classified as the physical and mental contribution of an employee to the production of the good (s). Capital stock — human-made goods which are used in the production of other goods.